Mozambique’s economy expected to grow 7.2 pct in 2015

2 March 2015

Mozambique’s economy is this year expected to grow 7.2 percent, according to the Economist Intelligence Unit (EIU), which has lowered its previous forecast by 40 basis points due to flooding which occurred at the beginning of the year.

In the published research note, the EIU said “from estimated growth of 7.5 percent in 2014, real GDP will fall to 7.2 percent in 2015, and the initial forecast was 7.6 percent before recovering to an average of 7.4 percent between 2016 and 2019.”

Coal and mining, as well as investment in transport infrastructure, will be the main drivers of growth, alongside communications, industry and financial services with strong performance, the economists said, noting that US group Anadarko Petroleum and Italy’s ENI are making “steady progress” in plans to develop a liquid natural gas, plant, which may start being built next year.

On the other hand, they say, the recent drop in oil prices means that, “some of these projects risk a delay resulting in a considerable downside risk in the GDP growth forecast.”

The likely delays in the development of infrastructure as a result of concerns about a possible excess gas supply, mean that the start of liquid natural gas production “should not happen before 2020 at the earliest,” which contrasts with government forecast, pointing to a target date 2018. (macauhub/MZ)