Mozambique: Balance of trade improves by almost 21% in first quarter

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Mozambique: Balance of trade improves by almost 21% in first quarter

2:08 CAT | 31 Jul 2024

File photo: Banco de Moçambique

Mozambique improved its trade deficit by almost 21% in the first quarter, to US$646.4 million, according to the central bank’s report on the balance of payments.

According to the document from the Bank of Mozambique, to which Lusa had access this Wednesday, preliminary data indicate that the Mozambican economy “reduced the demand for external savings to finance its consumption and investment needs” by 16.9% in the first quarter, with the combined balance of the current and capital accounts rising to US$628 million.

“This result was due, on the one hand, to the contraction of the current account (CC) deficit, by 20.8%, standing at US$646.4 million and, on the other hand, to the reduction of the surplus balance of the capital account by 69.7%,” the report reads.

It adds that the reduction of the current account deficit “essentially reflects the fall recorded in the negative balance of the goods account by 29.0%, justified by the increase in exports by 3.1%, compared to the decrease in imports by 2.5%”.

“The reduction in the CC deficit also resulted from the contraction of the negative balance of the services account by 4.4%, to a total of US$182.4 million, reflecting the decrease in demand for most se

Source: Lusa