Mozambique’s Gross Domestic Product (GDP) increased again in the first three months of this year, 0.12% compared to the same period in 2020, after three quarters in decline, the country’s National Statistics Institute (INE) announced yesterday.
“The performance of economic activity in the first quarter of 2021 is attributed mainly to the primary sector, which grew by 0.25%”, reads in the note on the quarterly national accounts distributed today.
The sector of agriculture and its derivatives was the one that had the greatest representation (about a quarter) in economic activity, so its growth of 4.8% offset the fall of the mining industry, which fell 18.02%.
At the sectoral level, in addition to the mining industry, another sharp drop was registered 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 stood out.
Mozambican GDP fell 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%), following the crisis caused by the pandemic: -3.54% (second quarter), -1.18% (third quarter) and -1,77% (fourth quarter).
The State Budget for 2021 predicts an economic growth of 2.1%, but the document was approved in late 2020, three months before the insurgent attacks on Palma, Cabo Delgado, leading to the indefinite suspension of Total’s gas project – the expected locomotive of the Mozambican economy.
The conflict in the north represents an increased risk, but on the other hand, covid-19 has eased and part of the restrictions have been lifted.