Mozambican economy grows above projections in 1st quarter

7 July 2010

Maputo, Mozambique, 7 July – The Mozambican economy posted growth of 9.5 percent in the first quarter, a level which is expected to make it possible to exceed the government forecast of 6.3 percent for this year, the Bank of Mozambique Tuesday in Maputo.

According to the central bank, that level of GDP growth was due to the contribution of the agricultural sector, which posted growth of 26 percent, services, retail and repair, with 12.7 percent, and transport and communications and manufacturing industry, both with growth of 10 percent.

Waldemar de Sousa, director of the bank of Mozambique, said that based on results for the first quarter it was possible to expect the country’s economy will this year see “very good” performance.

De souse noted that in the first quarter of 2008 the economy had posted growth of 6.1 percent and that in the same period of 2009 the rate had been 6.2 percent.

De Sousa also said that, despite economic growth, prices had been rising, with figures for June of this year pointing to accumulated inflation of 10.25 percent.

The government had projected average inflation of 9.5 percent for the end of 2010, but the Bank of Mozambique said it was possible that there would be two-digit inflation this year.

Waldemar de Sousa explained the rise in inflation with measures adopted by the authorities to eliminate subsidised prices for some products, particularly liquid fuels, which were introduced to minimise the impact of the international financial crisis. (macauhub)