Mozambique’s economy grows 2.9% in the first quarter and 3.8% in 2016

31 May 2017

Mozambique’s economy grew by 2.9% year-on-year in the first quarter of 2017, according to the country’s National Statistics Institute (INE), which also revised gross domestic product (GDP) growth from 3.3% to 3.8% in 2016.

In succession, that is, when compared to the previous quarter, the Gross Domestic Product of Mozambique grew 3.3%, also according to the information available on the INE website.

“The performance of economic activity in the quarter under analysis is attributed primarily to the tertiary sector, which grew by 6.7%, with a major highlight in the trade and repair services sector, with growth of around 8.1%,” the statement said.

The primary sector, in turn, “had a positive performance of about 4.5%, justified by the positive variation of 41.6% presented by the mining industry,” while the secondary sector contracted by 10%.

Meanwhile, the Standard Bank revised Mozambique’s growth forecast upwards from 3.8% to 4.1% due to increased raw material production and improvements in agriculture.

“The absence of military tension, a better outlook for agriculture and the expectation of a substantial increase in coal production, coupled with the proximity of a final investment decision for the ENI liquefied natural gas project, lead us to boost GDP growth prospects in 2017, from 3.8% to 4.1%,” said the May report on African markets. (macauhub)