Bank of Mozambique lowers GDP growth forecast for 2013 to 7 pct

30 April 2013

The projection for economic growth of the Mozambican economy in 2013 has been lowered from 8 percent to 7 percent, as a result of floods at the beginning of the year that mainly affected the south of the country, a director of the Bank of Mozambique said Monday in Maputo.

Whilst presenting the “Economic Climate and Outlook for Inflation” publication for April 2013, director Waldemar de Sousa also said that the rate of inflation in 2013 would be greater than that for 2012.

“In 2012 we ended the year with inflation of around 2 percent, but this year the rate will be higher despite remaining at a single figure,” said de Sousa adding that projections would be refined as time goes on.

In the Economic and Social Plan (PES) for this year, the government expected economic growth of 8 percent, which has now been lowered by one percentage point based on the central bank’s projections.

Waldemar de Sousa also said that in 2012 Mozambique had attracted a record amount of Foreign Direct Investment (FDI), which totalled US$5.218 billion, after US$2.603 billion in 2011.

Last week, Faúsio Mussa, an economist with the Standard Bank, said in Maputo that the Mozambican economy was expected to post maximum growth of 6 percent this year, due to the floods at the beginning of the year.

During an Economic Briefing that brought together around 200 economic agents and customers in Maputo, Mussa said that “taking into account the negative impact of the floods, we have lowered our economic growth projection for 2013, to 6 percent, which is lower than the average for the last ten years and also lower than the government’s initial projection.” (macauhub)