Mozambique’s economy expected to post maximum growth of 6 percent this year

23 April 2013

Mozambique’s economy is expected to grow by a maximum of 6 percent in 2013, which is lower than a previous projection of 8.4 percent se by the government in the State Budget, said a senior economist from the Standard Bank, Faúsio Mussa, said according to Mozambican newspaper O País.

During an Economic Briefing that brought together around 200 economic agents and customers in Maputo, Mussa also said that the projected economic slowdown, from an average of 7.4 percent in the last decade to 6 percent, was based on the effects of the floods seen in the first few months of the year.

“Taking into consideration the negative impact of the floods, we have lowered our projection for economic growth in 2013, to 6 percent, which is lower than the average for the last decade and also lower that the government’s initial projection,” said the Standard Bank economist, who believes that inflation will remain at a single figure.

According to Mussa robust foreign direct investment (FDI) continued to fund the current account deficit, which rose 29.5 percent year on year in the first nine months of 2012 to US$1.251 billion. (macauhub)