Cyclone Idai reduces the growth rate of Mozambique’s economy in 2019

12 April 2019

One of the consequences of cyclone Idai hitting Mozambique is expected to be a drop in the rate of economic growth in 2019, which will range between 2.8% and 1.1%, the Economy and Finance minister said in Washington.

Adriano Maleiane, who travelled to the United States capital to attend the Spring meetings of the World Bank and the International Monetary Fund, told Portuguese news agency, Lusa, that the forecast for economic growth entered into the General State Budget for 2019 was 3.8%.

“We estimate a loss of two percentage points compared with what we had planned for 2019,” said the Economy and Finance minister at the World Bank headquarters at the end of a roundtable discussion on cyclone Idai, which included representatives from 30 countries.

The minister added that the Mozambican government expects a rise in the rate of inflation – which at the end of 2018 stood at 3.8% – by about one digit, due to the needs created by the cyclone.

Cyclone Idai destroyed some 800,000 hectares of agricultural fields, with agriculture accounting for 23% of the country’s gross domestic product.

This damage is also compounded by the damage affecting circulation, transportation and communication systems, the minister added.

The International Monetary Fund (IMF) has yet to update the forecast made in October 2018 for the growth of Mozambique’s economy this year, which remains at 4.0%. (Macauhub)