Central Bank holds interest rates steady
The Mozambican economy grew 2.5% in the first quarter, the country’s National Statistics Institute (INE) announced today.
“Gross domestic product at market prices presented a positive variation of 2.5% in the first quarter of 2019 compared to the same period of the previous year,” said the institution in its Contas Nacionais [National Accounts] publication from January to March, 2019 .
Even so, the INE notes, growth is lower than in the same period of 2018, when the economy grew by 3.7%.
This year, “the performance of the economic activity in the first quarter is attributed primarily to the tertiary sector, which grew by 2.7%, with a greater emphasis on the rental of real estate and services provided to companies registering a growth in the order of five percent”.
Electricity and gas production and water supply contributed most to the decline, with a fall of 7.1%.
In the period under analysis, agriculture, fishing, livestock, hunting, forestry and logging had the largest share of GDP, with 23.1%, followed by trade and repair services with 10.6%.
In 2018, Mozambique’s GDP grew by 3.3%.
The International Monetary Fund (IMF) forecasts that economic growth in Mozambique will fall from an initial forecast for 2019 of 3.8% to 1.8%, due to the cyclones that affected the country between March and April, but forecasts a rise to 6% in 2020.Source: Lusa