Mozambique’s economy grows 3.2% in the first half of 2018

15 August 2018

Mozambique’s economy grew at a rate of 3.2% in the first half of 2018, an increase of 20 basis points compared to the same period of last year, the Council of Minister’s spokeswoman said on Tuesday in Maputo.

Ana Comoana, also deputy minister of culture, said that the performance of the economy from January to June is positive and “is essentially a result of the peaceful climate in which the country lives.”

Mozambican daily newspaper Notícias reported that although the growth registered is very close to the value reached in all of 2017 – 3.7% – performance is still modest compared to the forecast of 5.3% for the entire year of 2018.

“Economic growth is well below the average of 7.0% a year between 2005 and 2014,” she added, noting that the suspension of direct aid from cooperation partners and low levels of foreign direct investment have contributed to reduced GDP growth in recent years.

Comoana also said that exports grew by US$205 million to reach US$1.182 billion at the end of June, and the balance of trade recorded a deficit of US$218 million based on imports reaching US$1.4 billion.

The cabinet spokesperson said that although prices rose in the first half of the year with average annual inflation rising to 6.5%, “the government is satisfied that the indicator has been below two digits.” (macauhub)