Mozambique’s Gross Domestic Product (GDP) grew again in the first three months of this year, 0.12% compared to the same period in 2020, after three quarters in decline, the National Statistics Institute (INE) announced this Monday.
“The performance of economic activity in the first quarter of 2021 is attributed first and foremost to the primary sector, which grew by 0.25%,” reads the note on the quarterly national accounts distributed today.
The branch of agriculture and related was the most representative (about a quarter) in economic activity, so its growth of 4.8% offset the decline in the mining industry, which fell 18.02%.
At the sector level, in addition to the mining industry, another sharp drop was recorded in the area of hotels and restaurants (-15.13%).
On the growth side, in addition to agriculture and related activities, financial services and fisheries and aquaculture stand out.
Mozambique’s GDP shrank by 1.3% in 2020 due to the impact of covid-19.
The first quarter of 2020 had been the only one with year-on-year growth (1.71%), followed by the crisis caused by the pandemic: -3.54% (second quarter), -1.18% (third quarter) and -1.77% (fourth quarter).
The State Budget for 2021 foresees a 2.1% growth in the economy, but the document was approved in late 2020, three months before the rebel attack on Palma, Cabo Delgado, leading to the indefinite suspension of Total’s gas project – the expected locomotive of the Mozambican economy.
