World Bank may revise economic growth forecast for Mozambique downwards

17 April 2015

The World Bank may revise its growth forecast for Mozambique’s economy downwards from 7 percent to 6.5 percent due to natural disasters this year and to contained public spending, said Thursday in Maputo the World Bank’s chief in Mozambique.

Enrique Blanco Armas said that despite this forecast slowdown, Mozambique’s economy will grow this year above the African average, which is 4 percent, against 4.5 percent last year, mainly due to the drop in oil prices.

“In any event, growth of 7 percent currently expected for Mozambique is relatively high and higher than the average of Africa,” said the chief economist of the World Bank in Mozambique.

Blanco Armas said Mozambique’s Gross Domestic Product (GDP) would be driven by agriculture, infrastructure and services, and that industry, including gas and coal, have an, as yet, modest contribution to the growth of the economy.

“Industry has been supporting the growth of Mozambique’s economy in recent years, but when we look at the sectors that have contributed most they are agriculture, manufacturing and services,” said Blanco Armas. (macauhub/MZ)