Mozambique: GDP rises above projections in 2007 – Bank of Mozambique

25 January 2008

Maputo, Mozambique, 25 Jan – The Mozambican economy is expected to have seen growth of over the 7.6 percent initially forecast, the governor of the Bank of Mozambique, Ernesto Gove said Thursday in Maputo.

At the opening session of the 32nd Consultation Council of the Bank of Mozambique, Gove said that preliminary figures published by the National Statistics Institute for the January to September period showed the economy had grown by 7.6 percent.

“This kind of figure allows us to project, following the general evaluation, that the economy in 2007 grew beyond expectations,” the governor said.

For 2007 the Mozambican government projected GDP growth of 7 percent, annual average inflation of 6.4 percent and international reserves capable of covering around five months of imports of essential goods and services.

Despite a relatively positive performance, the Mozambican economy suffered the effects of the high price of oil and basic cereals on the international market, which had a negative impact on the balance of payments and inflation indicators, the governor of the Bank of Mozambique said.

This less than positive backdrop did not hold back Mozambique’s currency, the metical, from rising in value in the last few months of the year against the US dollar and South Africa’s rand.

In the monetary market, interest rates saw a slight reduction, as a result of capital injected into the economy, which was higher than the amount for 2006, Gove added. (macauhub)