Mozambican economy is withstanding Euro Zone crisis

8 August 2012

The Mozambican economy has been able to withstand the crisis in the Euro Zone and the country’s economy has grown 7.3 percent in the first half of the year, the Mozambican minister for Planning and Development, Aiuba Cuereneia, who noted that the growth target for 2012 was 8.5 percent.

Growth seen in the first half was bolstered by the performance of the construction sector, due to investment in construction and repairs of public and private facilities, of the mining sector, due to the contribution of the Moma heavy sands project and coal mining in Moatize and Benga, the transport and communications sector, as a result of additions to the public transport fleet and growing demand for services resulting from the expansion of suburban areas, as well as the agricultural sector, and the light industry sector.

The figures published by the minister are included in the proposal for the Balance Sheet of the Economic and Social Plan for the first half of 2012, approved Tuesday by the Council of Ministers, which will be submitted on 15 August to the country’s parliament.

“The indicators are quite encouraging – the average rate of inflation until June was 6.18 percent, as compared to an annual target of 7.2 percent and exports in the first quarter totalled US$938 million or 30 percent of the amount expected by the end of the year, of US$3.116 billion,” he said.

Foreign reserves at the end of June totalled US$2.264 billion, as compared to an annual projection of US$2.438 billion.

“Mozambique’s economy is managing to head off exogenous factors, particularly those related to the Euro Zone, and it is doing this by increasing domestic production,” said Cuereneia. (macauhub)