Mozambique: Government says prices being contained

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Mozambique: Government says prices being contained

4:45 CAT | 19 Oct 2022

Photo: Notícias

The Prime Minister of Mozambique, Adriano Maleiane, told parliament today that, as a result of the recovery measures announced in August, the government is managing to contain the rise in inflation and boost economic growth.

“The measures that the government has been implementing to increase production and mitigate fuel prices” are helping to “limit the rate of growth of average inflation in the country”, Maleiane said.

The Prime Minister was speaking in the Assembly of the Republic during a session dedicated to questions to the government from the deputies of the three parliamentary benches.

Answering a question on the impact of the measures to recover the country’s economy, Maleiane said that the government had managed to lower the price index to less than two digits in September.

“Last September, inflation stood at 8.78% against the double-digit average in Africa and Europe,” noted Maleiane.

He referred to the 12-month average inflation [which compares the average price index of the last 12 months with the average of the previous 12 months].

Year-on-year inflation, the figure usually cited around the world, stood at 12.01% in September in Mozambique.

The country’s economy, Maleiane continued, has been following a growth path, with the gross domestic product (GDP) growing 4.37% in the first half of the year, compared to 2021, which was heavily impacted by the Covid-19 pandemic.

“The growth of our economy in these two quarters was driven by the good performance of the agriculture, fisheries, tourism, transport, manufacturing, mining and services sectors,” he emphasised.

The Prime Minister said that improved performance is also being boosted by easing measures to control the Covid-19 pandemic.

Maleiane noted that the government’s performance had been affected by factors such as the rise in fuel prices on the international market due to the Russia-Ukraine war, the impact of climate change, and terrorism in Cabo Delgado.

Despite these constraints, the country remains committed to building more infrastructure, reducing poverty and protecting the most vulnerable sections of the population, he said.

The Prime Minister noted that the executive would submit to parliament a request for a specific revision of the VAT code, as part of the implementation of the package of economic recovery measures.

Source: Lusa