Mozambique’s economy grows 2.5% in the first quarter of 2019

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Mozambique’s economy grows 2.5% in the first quarter of 2019

10:13 CAT | 10 Jul 2019

File photo: Macauhub

Mozambique’s Gross Domestic Product (GDP) recorded a positive variation of 2.5% in the first quarter of 2019, compared to the same period of 2018, the National Statistics Institute (INE) reported.

When compared to GDP in the first quarter of 2018, which was revised up by 0.4 percentage points, the economic growth rate in the period from January to March 2019 represents a contraction of 1.2 percentage points.

Economic performance in the first quarter of 2019 is attributed, firstly, to the tertiary sector, which grew by 2.7%, particularly property rentals and services rendered to companies, with the growth of around 5%, followed by transport, storage and auxiliary transport, information and communication activities, with the growth of 3.3%.

In second place was the primary sector, with a growth of 2.5%, driven by agriculture, livestock, hunting, and forestry.

The secondary sector registered moderate growth of 0.5%, driven by the manufacturing sector, with a rise of 2.9% but pulled back by the electricity, gas and water distribution sectors, with a drop of 7.1 %.

The Economist Intelligence Unit last May said that Mozambique’s economy is expected to shrink by 2.2% this year, before returning to growth in 2020 and in the years to 2023.

Source: Macauhub