Mozambique: Central bank expects moderate economic growth in the medium term

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Mozambique: Central bank expects moderate economic growth in the medium term

8:02 CAT | 28 Sep 2023

File photo: Lusa

The Bank of Mozambique’s Monetary Policy Committee (CPMO) expects “moderate economic growth in the medium term” for the country, as well as continued recovery of the national economy.

“Excluding natural gas projects, economic activity is expected to continue to recover, despite the probable negative impacts of climate shocks on agricultural production and various infrastructures,” said a report on the “Economic Situation and Inflation Prospects,” released yesterday.

It added that in the second quarter of 2023, Mozambique’s Gross Domestic Product grew by 4.7%, reflecting “essentially a remarkable performance by the extractive industry, especially natural gas production”.

“In the medium term, it is expected that the extractive industry will continue to contribute to the acceleration of Gross Domestic Product growth,” he also said, admitting that the “recovery trend” of economic activity in the country “continues”.

“The performance of the economy in the first half of the year continues to indicate a gradual recovery in economic activity, despite the effects of the climatic shocks that have hit the country. As a result, real GDP growth is tending to approach its long-term trend,” he emphasised.

The Mozambican economy is expected to grow by 5% in 2023, according to the government’s forecast at the beginning of the year.

Source: Lusa