Agricultural production in Mozambique is expected to see a rapid recovery following destruction of some crops and infrastructure due to flooding at the beginning of the year, according to the International Monetary Fund (IMF).
The head of an IMF mission that ended a visit to Mozambique Wednesday, said that as well as losses to the agricultural sector, exports of coal and other products had come to a standstill because of damage to railway lines, which led to the country losing income.
In the same period imports had to be increase, particularly of food and fuel, which meant that the Bank of Mozambique had to use a considerable part of its reserves to import goods when there were delays in paying out foreign aid to Mozambique.
“However, the Mozambican economy remains robust, despite the still fragile global climate resulting from the financial crisis that has rocked the international economy. We calculate that real gross domestic product (GDP) growth totalled 7.5 percent in 2012, which is one of the highest in the world and the region, reflecting the expansion and rapid increase in coal production as well as financial services, transport and communications and agriculture,” said Doris Ross. (macauhub)