Mozambican economy registers growth of 3.0% in the first half

17 August 2017

Mozambique’s economy grew by 3.0% in the first half of the year, leading to the expectation that the 5.5% forecast in the Economic and Social Plan (PES) for 2017 will be met, said the spokesperson for the Council of Ministers, at the end of a meeting on Tuesday in Maputo.

Ana Comoana, who is also the deputy minister of Culture and Tourism, said the implementation of the State Budget in the first six months of the year stands at 45.7% of the value for the whole year, which includes expenses of 272.3 billion meticais (US$4.399 billion).

The Economic and Social Plan is the instrument that schedules and manages the economic and social activity that guides the actions of the government, while the State Budget is the financial expression of the PES, according to Mozambican news agency AIM.

The spokesperson added that factors such as slower inflation, appreciation of the metical, as well as the increase in net international reserves, currently calculated to cover five months of imports of goods and services, excluding large projects, contributed to the level of economic growth.

In its assessment at the meeting on Tuesday, the Mozambican Council of Ministers calculated that the State charged 45% of expected revenue in the first half of the year and incurred expenses of around 40%.

At the same meeting, the government approved a revision of the Foreign Exchange Law, which gives the Bank of Mozambique full powers to regulate foreign exchange issues and to apply what is set out in that law.

Comoana pointed out that what the Council of Ministers did, with the approved revision, was to pass all normative powers regarding control of foreign exchange control onto the Bank of Mozambique. (macauhub)