The consultancy firm NKC African Economics this Friday revised the estimate for growth in Mozambique’s economy this year from 1.2% to 1%. The two main reasons given are pandemic containment measures and lack of investment in the north of the country.
“The economy staggered out of recession in the first quarter of this year, due to the slowdown in measures to combat the pandemic for most of the period, the continued recovery of the Moatize mine, but still affected by the damage from tropical cyclone Eloise and the armed conflict in Cabo Delgado,” the analysts write in an analysis note, in which they anticipate that the economy will maintain positive growth and end the year with a 1% expansion.
“In April, the business confidence index improved as commodity prices rose, but we expect real GDP to recover slowly to 1% this year, after negative growth of 1.3% last year, against a backdrop of prolonged measures to contain the spread of the pandemic and no investment in Cabo Delgado due to security concerns,” add the analysts at the African branch of Britain’s Oxford Economics.
Africa has recorded 1,124 more covid-19-associated deaths in the past 24 hours, bringing the total number of deaths since the pandemic began to 139,278, and 54,120 new infected, according to the latest official data.
