In-Depth Analysis
Mozambique
Despite challenges such as elevated public debt, recurrent adverse weather events, and an increase in minor insurgencies, the country has strong economic prospects thanks to the expected development of its bountiful coal and natural gas resources. Recent robust economic growth has had only a moderate impact on poverty reduction and human development – Mozambique remains one of the poorest countries in the world.
The closure of mines, borders and other non-essential businesses due to the Covid-19 pandemic will wreak havoc to the economy this year. While the development of the Coral South and Mozambique LNG projects are going ahead, providing some respite for the economy, the sharp fall in energy prices and an uptick in localised violence threaten to curtail further foreign investment. The Islamist insurgency in Mozambique’s northern Cabo Delgado province has escalated markedly over the last quarter with recent incidents suggesting that militants have increased their capacity and grown emboldened to attack new targets. (Source: Mozambique Quarterly Update, published May 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-6.5 |
|
Consumer Price Index (% change y-o-y, avg) |
2.8 |
|
Current Account Balance (as a % of GDP) |
-19.9 |
|
Real GDP (annual % change) |
2.1 |
|
GDP per Capita, US$ |
510.3 |
|
Import Cover (months) |
4.6 |
|
Population, million |
30.4 |
| Total External Debt (as a % of GDP) |
100.7 |