The Bank of Mozambique (BdM) revealed that the country’s trade deficit fell significantly by 21 per cent in the first quarter of 2024, standing at 40.9 billion meticais (646.4 million dollars). This improvement comes according to the balance of payments report released by the institution, according to Lusa.
The document indicates that the economy managed to reduce its demand for external savings, reducing the need for financing for consumption and investment by 16.9 percent during the period analysed. The combined balance of the current and capital accounts was 39.8 billion meticais (628 million dollars).
The report details that the current account deficit fell by 20.8 per cent to 40.9 billion meticais (646.4 million dollars). ‘This result is largely due to the 29 per cent reduction in the negative balance of the goods account, driven by a 3.1 per cent increase in exports, while imports fell by 2.5 per cent,’ the document reads.
In addition, the services account saw its deficit contract by 4.4 percent, totalling 11.5 billion meticais (182.4 million dollars), reflecting the reduction in demand for services by residents. This adjustment is related to the development of major projects, particularly in the mining industry and natural gas exploration.
‘This result is largely due to the 29 per cent reduction in the negative balance of the goods account, driven by a 3.1 per cent increase in exports, while imports fell by 2.5 per cent’
The BdM revealed that net current transfers showed a surplus of 13.8 billion meticais (217.7 million dollars), an annual increase of 44.7 per cent, driven by growth in net receipts by the private sector of around 50 per cent.
“As a result, economic transactions between Mozambique and the rest of the world generated an overall surplus of 11 billion meticais (174.6 million dollars). This balance contributed to an increase in the monetary authority’s reserve assets, which totalled 230.6 billion meticais (3.6 million dollars), enough to cover three to five months of imports of goods and services, including and excluding major projects respectively,’ the report said.
However, the document highlights that the country’s net debt position abroad deteriorated by 2.1 per cent to 4.3 billion meticais (69.1 million dollars).
