Mozambique government reassesses economic growth targets for 2016

1 April 2016

Internal and external events are making the Mozambican government reassess the country’s economic growth targets for 2016, said the Minister of Economy and Finance, Adriano Maleiane.

The minister, cited by daily newspaper Notícias, said these events included heavy rains in the north of Mozambique and drought in the south and political and military tension and, internationally, the unfavourable economic climate.

On the sidelines of the 1st Coordinating Council of the Ministry of Economy and Finance, a three-day event that beganWednesday in Matola, Maputo province, Maleiane said that agriculture, one of the sectors with considerable weight in Gross Domestic Product (GDP), has been seriously affected by drought and floods.

Maleiane said “it will be very difficult to achieve an economic growth rate of 7 percent” and added he did not want to give new figures before finishing the evaluation.

The Economic and Social Plan provides for an increase in GDP of 7 percent and also projects inflation of an annual average of 5.6 percent.

The government of Mozambique recently revealed there are more than 300,000 citizens who will be affected by food insecurity in southern and central regions due to drought and in the north of the country due to flooding. (macauhub/MZ)