Mozambican economy expected to post growth of 6.2 pct this year

25 March 2010

Maputo, Mozambique, 25 March – The Mozambican government for this year projects economic growth of 6.2 percent, inflation of 9.5 percent and exported goods to the value of US$2.142 billion, according to the proposed Economic and Social Plan (PES) for 2010.

In order to meet this economic growth target, several sector will be of utmost importance including the mining sector, which is expected to post growth of 41.7 percent, electricity and water (12 percent), agriculture (11.9 percent), services (11.9 percent), transport and communications (9.2 percent), retail (7.4 percent) and construction (4.1 percent).

“The positive contribution of the mining industry will be driven by the programme to expand natural gas production and the start of production of coal,” at the mines of Australian company Riversdale Mining at Moatize and Benga, in Tete province, central Mozambique.

According to the PES, the agricultural sector will see growth of some 8 percentage points to 11.9 percent this year as a result of the plan of action for food production, launched two years ago and due to end in 2011.

The PES proposal, which needs to be approved by parliament, also points to the market climate being unfavourable for the country, which will mean “a rise in the price of fuel in 2010.”

“This situation will lead to a rise in costs of production and transport of goods, pressuring inflation on the supply side of goods and services, with the average inflation rate expected to be 9.5 percent,” the document said.

According to preliminary estimates from the Maputo government, exports will total over US$2.142 billion, a rise of 10 percent against projections for 2009.

Imports are expected to increase by 1 percent this year to US$3.305 billion. (macauhub)