africa Currency Economy Finance Government Mozambique

Mozambique: GDP grows at 3.4% year on year in January-September

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The Mozambican economy grew by 3.4% between January and September this year, the government announced after the weekly meeting of the Council of Ministers which analysed the report on state budget execution for the first three quarters of 2018.

 

“In terms of performance, looking at the main indicators, gross domestic product (GDP) grew by 3.4%,” Ana Comana, spokeswoman for yesterday’s session of the Council of Ministers, said. “This [GDP growth] indicator already shows the improved performance of the national economy.”

GDP grew by 3.2% in the first quarter of this year, followed by growth of 3.3% in the next two quarters. But with just one quarter still to go, the numbers still fall short of the executive’s annual forecast.

The Mozambican government had forecast at the beginning of the year that the economy would grow 5.3% in 2018, a target that was revised downwards to 4.1% in early October by the Ministry of Economy and Finance.

The World Bank predicts that Mozambique’s economy will grow by 3.3% this year, while the International Monetary Fund points to 3.5%.

The Mozambican GDP grew 3.8% in 2016 and 3.7% in 2017.

With regard to the implementation of the State Budget, the report took into account “the rationalisation of public spending” as well as “the improvement in the state’s revenue collection capacity”, the spokesperson said.

The government noted that the housing and catering sectors deserved attention as being able “to leverage the national economy”, she added.

Source: Lusa via Club Of Mozambique

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