The Mozambican economy grew 3.2 percent in the first half of this year, according to data released by the government on Tuesday. This growth is 0.2 percentage points higher than that registered in the same period of 2017.

Although growth is very close to the level registered in all of 2017 (3.7 percent), the performance is still modest compared to the government’s forecast of 5.3 percent for the entire year.

Furthermore, economic growth is still well below the 2005 to 2014 average of 7 percent. In addition, the suspension of aid to the country by cooperation partners and the momentary ‘cooling’ of gas projects have contributed to smaller gross domestic product than in recent years.

Government spokeswoman Ana Comoana however believes that the performance of the economy in the first half of this year is positive, essentially due to the peace now obtaining here.

In addition to the economy growing slightly above the record for the same period of 2017, exports also increased by about US$205 million to US$1,182 million, while with imports at US$1,400 million, the trade balance fell a little more than US$200 million in the first half of 2018.

Inflation at 6.5% pleases the Government

Although prices have risen over the period under review, with annual average inflation standing at 6.5 percent, the government is satisfied that inflation has fallen below two digits. Average inflation of 11 percent is expected for 2018 as a whole.

Under the management of the Bank of Mozambique, net international reserves have also registered an increase, with enough to cover seven months of imports, against just over five months in the first half of 2017.

The net international reserves fell dramatically between 2014 and 2016, when the metical depreciated against the dollar, the American currency reaching 80 meticais on the exchanges.

Source: O País/ COM