Just over a third of Mozambique’s adult population has a bank account
The BMI research consultancy today announced that private consumption in Mozambique is expected to fall 11.2 percent this year, having already fallen 8.8 percent last year as a result of the economic crisis.
“Our perspective on the evolution of private consumption in Mozambique continues to be negative during 2017, following the decline of 2016,” an analysis note on the subject reads.
The BMI Research document, which was sent to investors and to which Lusa has access, attributes this new drop in household spending “to the influence of weak economic growth on families already facing high unemployment and inflation”.
Mozambique’s gross domestic product is expected to grow by 4 percent this year, after falling from 6.6 percent in 2015 to 3.3 percent last year as a result of the sovereign debt crisis’s influence on the economy and the financial sector.
Mozambique is undergoing an economic and financial crisis worsened by the discovery of US$ 1.4 billion in hidden state debt, prompting the IMF and international donors to suspend aid to the country in the past year.Source: Lusa