Credit to the economy grew by 3.8% over the last nine months, from 277 billion meticals in December 2023 to 287.5 billion meticals (around 4.4 billion dollars) in August 2024.
This increase, equivalent to 10.5 billion meticals, was mainly driven by the domestic currency component, which grew by 11.5 billion meticals, while the foreign currency portion fell by 1 billion meticals (around 16.7 million dollars).
According to the balance of the economic and social plan and state budget for the third quarter of 2024, published by the Ministry of Economy and Finance (MEF), the sectors that contributed most to this increase were the manufacturing industry, with an increase of 1.3 billion meticals, private individuals, with 6.3 billion meticals, and the extractive industry, which saw an increase of 758 million meticals between December 2023 and June 2024.
‘The sectors that contributed most to this increase were the manufacturing industry, with an increase of 1.3 billion meticals, private individuals, with 6.3 billion meticals, and the extractive industry, which recorded an increase of 758 million meticals between December 2023 and June 2024.’
In the same period, the country saw a slowdown in inflation, with an accumulated rate of 1.20 per cent, 1.81 percentage points (pp) lower than in the same period last year. Year-on-year inflation, meanwhile, stood at 2.45 per cent, down 2.84 pp on the same period in 2023.
This slowdown was mainly driven by the food and non-alcoholic beverages and restaurants, hotels and similar divisions, which contributed a positive 0.49 pp and 0.24 pp, respectively.
The MEF publication also highlights a reduction in interest rates over the last few months. The weighted average rate for new loans on the retail market fell from 24.00% in December 2023 to 20.62% in July 2024, while the average deposit rate went from 11.40% to 10.37% over the same period.
In terms of exchange rate behaviour, the metical remained stable against the main international currencies. During the period analysed, the average rate was 63.97 meticals per dollar, 69.47 meticals per euro and 3.47 meticals per rand.
The results presented reflect a scenario of relative economic stability, but the MEF points to the need to maintain policies that strengthen credit to the economy, promote investment and guarantee sustainable growth, in a context of internal and external challenges.
