Mozambican economy is back on the growth path: Nyusi on Independence Day

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Mozambican economy is back on the growth path: Nyusi on Independence Day

11:58 CAT | 27 Jun 2017

AIM / President Nyusi speaks on Heroes Square last Sunday

President Filipe Nyusi said on Sunday that the Mozambican economy could register growth of around 5.5 percent this current year, against the 3.8 percent registered in 2016.

The president, who was speaking in Mozambican Heroes Square in Maputo on the occasion of the 42nd anniversary of national independence, welcomed the resurgence of the country’s economy after having faced challenging macroeconomic situations in the last two years.

“We note with satisfaction that our economy is rebounding. After facing challenging macroeconomic situation in the last two years,we can say that our economy is back on the path of growth,” the president said.

The president pointed out, for example, that product price inflation stood at 25.7 percent in 2016, and by the end of the first quarter of this year it had fallen to 21.7 percent, a downward trend.

The exchange rate of the Mozambican currency (the metical) is improving in relation to the main currencies of the market, Nyusi noting that parity is now around 60 meticals to the US dollar, down from nearly 80 meticais at the end of last year.

International reserves for the purchase of factorial and non-factorial goods stood at US$1,833 billion at the end of 2016, enough for 3.6 months of imports.

In the first quarter of the year, reserves were US$1.861 billion above the planned target, enough to cover 5.4 months of imports. Furthermore, according to the president, macroeconomic and productive investment prospects, both domestic and foreign, remain strong and offer quite encouraging signals.

Source: AIM Moçambique