Mozambican economy posts real growth of 8.8 pct in second quarter

24 September 2010

Maputo, Mozambique, 24 Sept – The Mozambican economy posted real growth of 8.8 percent in the second quarter of the year, 0.5 percentage points led than in the previous quarter, a spokesman for the Bank of Mozambique said Thursday in Maputo.

Valdemar de Sousa, who is also a director of the central bank, said that growth had been due to positive variations seen in the tertiary sector, which had posted growth of 9.9 percent, and the primary sector, which posted growth of 9.5 percent.

In overall terms, exports rose 10.9 percent in the first half of the year, exceeding US$1 billion and total imports fell by 4.3 percent, to US$1.5 billion.

As a counterpoint to growth in GDP and exports, the Consumer Price Index in the first half of this year saw its worst performance of the last five years, reaching growth of 10.25 percent.

Sousa said that the “freeze” on donations to the country by the international community at the beginning of the year and “accelerated depreciation” of Mozambique’s currency, the metical, which fell 25.5 percent from January to June, were responsible for the CPI rise.

At the beginning of this year, the group of 19 main donors to the Mozambican State Budget delayed payment of aid, of over US$467 million, and made payment conditional on several political concessions by the Mozambican government.

The depreciation of the metical against the main benchmark foreign currencies in Mozambique is seen as one of the causes of the rise in the cost of living, given the country’s need to use foreign currency to pay for its imports. (macauhub)