Mozambique’s economic growth will not be affected by metical depreciation – KPMG

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Mozambique’s economic growth will not be affected by metical depreciation – KPMG

2:35 CAT | 04 Dec 2015

Televisão de Moçambique (File) / KPMG's director general Filipe Manjate.

KPMG says that despite the current economic environment, characterized by the sharp devaluation of the metical against the US dollar, the country’s economy will continue to register growth later this year.

The sharp depreciation of the domestic currency against the U.S. dollar throughout the year has been interpreted by some analysts and the private sector as an obstacle to economic growth in the country but the consulting and auditing company believes that, despite the fall, the country’s economic growth later will remain robust this year.

According to KPMG, the price of the main commodities exported by the country, such as coal and aluminum, is critical to economic growth, but adds that when the price of these commodities rises again, so too will gross domestic product.

In the first half of this year, Mozambique’s economy grew by more than six percent. For over a decade, it has grown at an annual average of seven percent.

Source: Televisão de Moçambique