Consultancy firm NKC African Economics revised the growth estimate for Mozambique’s economy this year, from 1.2% to 1%, due to measures to contain the pandemic 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 easing of measures to combat the pandemic during most of the period, the continued recovery of the Moatize mine, but still affected by the damage of tropical cyclone Eloise and the conflict. in Cabo Delgado,” the analysts write their report, anticipating that the economy will maintain the positive momentum and end the year with a 1% expansion.
“In April, the business confidence index improved with the rise in raw material prices, but we expect real GDP to slowly recover to 1% this year, after negative growth of 1.3% last year, in a context of prolonged measures to contain the spread of the pandemic and the absence of investment in Cabo Delgado due to security concerns,” NKC adds.
NKC African Economics is the African subsidiary of British Oxford Economics.