Mozambique’s economic growth slows to 5.3%

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Mozambique’s economic growth slows to 5.3%

8:06 CAT | 23 May 2016

The growth in Mozambique’s Gross Domestic Product slowed in the first quarter of this year to 5.3 per cent according to figures released by the National Statistics Institute (INE).

According to the daily newspaper “Noticias”, this figure is close to the 5.8 per cent annual growth for 2016 predicted by the World Bank. However, “Noticias” adds that the World Bank expects the country’s growth to recover to seven per cent in 2017.

The government’s Economic and Social Plan (PES) for 2016 originally projected a growth rate of seven per cent. However, various factors including the severe drought in the south and centre of the country and flooding in the north, led the government to revise this figure down to six per cent.

The INE found that the highest growth in the first quarter of the year was in the secondary sector which grew by ten per cent. Within this sector, construction grew by 11.4 per cent and manufacturing by 9.9 per cent.

The tertiary sector grew by 6.9 per cent, with the catering industry increasing by 8.7 per cent.

However, the primary sector only grew by 2.7 per cent, despite an eleven per cent growth in mining.

Source: AIM