Mozambique: Government highlights economic growth of 5% in 2023

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Mozambique: Government highlights economic growth of 5% in 2023

2:16 CAT | 14 Feb 2024

File photo: Lusa

The Mozambican government on Tuesday reported economic growth of 5% in 2023 compared to 4.4% in 2022, highlighting an “economic expansion” that “exceeded” the regional average of the African Development Community South (SADC).

“Economic growth for 2023 reached 5%, compared to 4.4% in 2022, driven by extractive industries, tourism, agriculture, transport and communications, among others,” government spokesperson Ludovina Bernardo told media after a Council of Ministers meeting which reviewed the 2023 Economic and Social Plan and State Budget (PESOE).

According to the Mozambican executive, growth in 2023 resulted from policies and reforms implemented during the year, especially the economic reforms adopted for “greater dynamics” in private sector economic activities and to attract investment.

“In this context, a positive trend was observed in average inflation, which registered 7.1% against an initial forecast of 11.5%. Net international reserves were above the three months forecast in PESOE and reached the mark of 4.3 months to cover imports of non-factorial goods and services, translating into greater credibility and greater capacity to absorb shocks in the balance of payments,” Bernardo added.

The Council of Ministers also noted that state revenues increased by 14.2%, corresponding to 91.4% of target.

“Public expenditure recorded growth of around 7.5%, corresponding to 97.4% of the forecast. There was an improvement in the current account deficit as a result of the significant reduction in the value of exports of goods from large projects,” the government spokesperson concluded.

Source: Lusa