The Bank of Mozambique (BoM) predicts that there will be a slight acceleration in the economy’s growth in the short term, given the prospects for the extractive industry and the tertiary sector.
“This forecast is underpinned by the prospects for improved performance in the extractive industry and the tertiary sector, despite the occurrence of extreme climatic events,” said the report on the economic situation, released on Tuesday, 2 April.
“The outlook corroborates the gradual improvement in economic activity in the short term. There will be an increase in business confidence about future actions, with an increase in the volume of sales and new orders,” it emphasises.
At the beginning of the year, the government announced that the national territory had recorded economic growth of 5 per cent in 2023 compared to 4.4 per cent in 2022, highlighting an “economic expansion” that exceeded the regional average of the South African Development Community (SADC).
“Economic growth for 2023 reached 5 per cent, compared to 4.4 per cent in 2022, driven by the Extractive Industry, Tourism, Agriculture, Transport and Communications sectors, among others,” said Ludovina Bernardo, spokesperson for the Executive, who added that the growth was the result of policies and reforms implemented during the year, especially the economic reforms adopted to make economic activities in the private sector “more dynamic” and to attract investment.
“In this context, there was a positive trend in average inflation, which registered 7.1 per cent against an initial forecast of 11.5 per cent. Net International Reserves were above the three months forecast in the Economic and Social Plan and State Budget and reached the 4.3 months mark for covering imports of non-factorial goods and services, translating into greater credibility and greater capacity to absorb shocks to the balance of payments,” he added.
For 2024, the government is projecting economic growth of 5.5 per cent and maintaining the average annual inflation rate at 7 per cent. The forecast is included in the bill approving the Economic and Social Plan and State Budget (PESOE-2024), which also expects to reach a value of more than 9.7 billion dollars in exports and to build net international reserves totalling 2 billion dollars, corresponding to three months of covering imports of goods and services.
