Mozambique expected to post trade deficit of US$1.629 billion this year

28 February 2012

Maputo, Mozambique, 28 Feb – Mozambique’s balance of trade deficit is this year expected to total US$1.629 billion, a source from Mozambique’s Institute for Export Promotion (Ipex) told Macauhub.

According to the figures from Ipex, an arm of the Ministry for Industry and Trade, the deficit will be the result of imports totalling US$4.289 billion, a rise of 11 percent year-on-year, and exports of US$3.020 billion, or 17 percent more than in 2011.

The rise in imports is the result of increased imports by large investment projects, of 6 percent, and of the rest of the economy, of 13 percent.

The source also said that the weight of imports for sectors that are not included in the category of large projects may increase by 1 percentage point to 74 percent of total imports.

In its turn, growth of exports will be affected by the “dynamism” of the large projects sub-sector, which is expected to see a rise of 22 percent to annual gross revenues of around US$2.384 billion, driven by coal exports. (macauhub)