Mozambican economy should grow 7.2 percent in 2011

27 October 2010

Maputo, Mozambique, 27 Oct – Mozambique’s economic growth rate should rise from 6.7 percent this year to 7.2 percent in 2011, indicate government forecasts set out in its Economic and Social Plan (ESP), reports the Maputo-based daily Noticias.

The government asserts in the document that in 2011 the budget will be oriented towards macroeconomic stabilisation and the creation of internal capabilities to promote economic growth and reduce exposure to cyclical shocks, besides seeking to correct macroeconomic imbalances by adopting specific tax, monetary and exchange policy measures.

The ESP was submitted this week to parliament. It indicates that one of the main economic performance goals is to hold the average annual inflation rate at about 8 percent, and to achieve a level of US$2.402 billion in exports of goods, for growth of 15 percent over projections for this year.

Another goal is to reach a level of net international reserves that can finance 4.3 months of imports of goods and services, including large projects. Nominal gross domestic product (GDP) should rise to 375 billion meticais (US$10.330 billion), versus this year’s 324 billion meticais.

“The projection of the main socio-economic indicators shows that for the set economic growth overall production will increase by 6.7 percent. The current plan was conceived taking into account the priority given to reorienting public spending towards activities meant to increase production, jobs and productivity, and envisaging a good rainy season for the practice of farming activity,” reads the document cited by Noticias. (macauhub)