Mozambique: GDP growth projected at 6.8 percent this year

18 December 2008

Maputo, Mozambique, 18 Dec – Mozambique’s gross domestic product (GDP) is expected to see growth of 6.8 percent, despite the year having been marked by high oil and food prices and, recently, by the world financial crisis, said the governor of the Bank of Mozambique.

According to Mozambican newspaper Notícias, Ernesto Gove said that the fact that economic expansion was driven by areas such as construction, financial intermediation services, transport and communications and the mining industry was important due to its multiplying effect on employment and economic growth.

The governor, who was speaking in Maputo to mark the close of the 2008 financial year, said that until September of this year goods exports had totalled US$1.953 billion, as compared with US$2.497 billion in imports and in the first nine months the country’s fuel bill was US%582 million, as compared to US$570 for the whole of 2007.

Meanwhile, accumulated inflation to November totalled 5.7 percent, and year on year inflation slowed from 10.75 percent in September to 8.62 percent in November, figures which paired with the recent fall in fuel prices have led the central bank to be optimistic about inflation this year.

Even in this climate of optimism, the Governor of the central bank warned that the international financial crisis would have direct and indirect effects on the Mozambican economy, which is considered small within a global context.

In terms of challenges and prospects, Gove guaranteed that in 2009 monetary policy would continue to be drawn up in line with the objectives of macroeconomic policy as defined by the government, which has targets of 6.2 percent GDP growth, annual inflation of 7 percent and net foreign cash reserves to guarantee 4.6 months of imports. (macauhub)