Economy Growing At Over Eight Percent

16 June 2011

Maputo — The Mozambican grew in the first quarter of 2011 at an annual rate of 8.4 per cent, according to the latest statistics released by the Bank of Mozambique.

This is slightly lower than the growth rate recorded in the same period of 2010, which was 8.7 per cent, but it is easily in line with the government’s target, which is for economic growth of 7.4 per cent for the entire year of 2011.

The tertiary sector showed the best performance in the first quarter, with a growth rate of 10.7 per cent. Within the sector, the best performers were transport and communications, financial services, and hotels and restaurants.

The primary sector grew by 8.9 per cent. Within this sector, agriculture, livestock and forestry grew by 9.3 per cent and fisheries by 6.8 per cent.

The secondary sector only grew by 1.3 per cent. Here the best performance was in electricity and water, which grew by four per cent.

Inflation in May, as measured by the Maputo Consumer Price Index, was only 0.46 per cent. This compares with an inflation rate of 1.98 per cent in May 2010. Annual inflation declined from 13.04 per cent in April to 11.36 per cent in May.

The Mozambican currency, the metical, has continued its impressive recovery against all major currencies. In May the metical appreciated by 3.55 per cent against the US dollar. This was the ninth consecutive month that the metical gained against the dollar. The average exchange rate practiced by the commercial banks at the end of April was 30.71 meticais to the dollar, and by the end of May it had risen to 29.62 meticais to the dollar.

So far this year the metical has appreciated by 9.09 per cent against the dollar, which compares with a depreciation of 26.03 per cent in the first five months of 2010.

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