Mozambique: Economy grows 4.37% in H1; YoY inflation hits 11.7% in July

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Mozambique: Economy grows 4.37% in H1; YoY inflation hits 11.7% in July

1:50 CAT | 15 Aug 2022

File photo: Lusa

Year-on-year inflation in Mozambique hit 11.77% in July, the highest value in the last four years and 10 months, the National Statistics Institute (INE) has announced.

Year-on-year inflation in June was 10.81% and rose 96 basis points in July (albeit at a slower pace than the 150 basis points from May to June), according to the new Consumer Price Index (CPI) bulletin.

To find a higher value, it is necessary to go back to August 2017, when, in the aftermath of the shock caused by the so-called ‘hidden debts’, inflation was 14.13%.

The increase seen since the beginning of the year is in line with the global inflationary climate caused by the war in Ukraine and the increase in fuel prices.

The food, non-alcoholic beverages and transport sectors once again contributed the most to the increase in prices in Mozambique.

The CPI values are calculated by INE from the price of a basket of goods and services, with data collected in the cities of Maputo, Beira and Nampula.

In cumulative terms, since the beginning of the year, 2022 inflation in Mozambique is now 7.10%.

Economy improves growth in second quarter

In terms of gross domestic product (GDP) growth, the Mozambican economy reached 4.37% in the first half of the year, the INE announced in its most recent national accounts bulletin.

The GDP growth rate was 4.14% in the first quarter of 2022, rising to 4.59% in the second quarter (from April to June), the document reads.

The basis of comparison is the same period of 2021, during which the economy was more severely affected by the effects of the Covid-19 pandemic.

The Mozambican economy grew by 2.16% in 2021, and for 2022 the government has set as its target the 2.9% GDP increase foreseen in the Economic and Social Plan and State Budget approved by parliament.

Source: Source: diário Económico