Bank of Mozambique concerned about the effect of COVID-19 on the country’s economy

4 March 2020

The new COVID-19 coronavirus is a threat to the economy of Mozambique due to the country’s economic and trade relations with China, the epicentre of the outbreak, said on Tuesday in Maputo the director of the Bank of Mozambique, Jamal Omar, during a seminar on the macro-economic situation of the country.

“What we observe is that the effect of the coronavirus in Mozambique can be seen through the relationship that the country has with China and the rest of the world. With China we have a level of imports of around 12% and the set of goods that we import has an effect on the evolution of domestic prices,” said the Bank of Mozambique director.

Omar warned that if the epidemic of COVID-19 extended for more time, the impact will be great in China, as well as in other countries, but much higher in Mozambique, “characterised by higher domestic prices and also the fall in exports to China in particular, since it is one of the largest consumers of raw materials.”

“Our exports may be reduced because China is a great partner to our economy and is a world power that consumes most of the products in the international market,” warned the director, quoted by Mozambican news agency, AIM.

The main goods and products imported from China that are increasing in price are essentially building materials, clothing and trinkets, and in terms of exports the level remains relatively at approximately 9.0% and is concentrated on ore.

These concerns about the impact of the virus on the Mozambican economy come 24 hours after the global effect of the new coronavirus epidemic totalled over 3,000 dead, just as the number of cases increased in Italy and South Korea. (macauhub)