Economical overview
Compared to neighboring countries, Mozambique
has a varied economy, where agriculture and industry as
well as trade and tourism play an important role.
Agriculture is estimated to account for a quarter of the
gross domestic product (GDP), but its importance is more
important than that. Four out of five Mozambicans rely
on family farming.
According to the World Bank, Mozambique in the
mid-1990s was the world's poorest country. But after the
end of the civil war in 1994, growth accelerated
rapidly. The manufacturing industry flourished and
nearly a thousand state-owned companies were privatized,
even though large monopoly companies remained
state-owned.
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Countryaah.com:
Major imports by Mozambique, covering a full list of top products imported by the country and trade value for each product category.
The rapid economic progress has attracted
considerable attention abroad. Mozambique, which used to
be the left's nanny, liberalized trade and released
prices, becoming a favorite for market liberals.
Mozambique has since 1996 been one of the sub-Saharan
African countries that has experienced the strongest
growth. On average, gross domestic product (GDP) has
grown by over seven percent each year. The rapid
recovery has been driven by large foreign investment in
mining and industry. During the 2010s, investors were
attracted by newly discovered significant offshore
natural gas deposits and large coal resources. However,
the fact that the country's infrastructure is still
poorly developed, even though investments are in
progress, and does not meet investors' requirements,
however, risks hampering development. The IMF has
estimated that coal and gas production can increase
growth in the country by two percent annually.
However, the large investments have not created many
new jobs, and growth in other important sectors of the
economy has been weak. Ordinary people, especially in
the countryside, have not been part of the progress
either. Critics believe that in recent years market
liberal policies have taken too little into account
social effects in the form of increasing income gaps and
poverty.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including NAK which represents the country of Mozambique.
Critical voices have been raised against Mozambique's
market-liberal economic policies, which are largely
governed by the World Bank and International Monetary
Fund (IMF) lending institutions. The critics believe
that it has taken too little into account social effects
in the form of increasing income gaps and poverty. The
austerity programs carried out under the auspices of the
credit institutions have, among other things, meant that
state subsidies have been abolished, that state
employees have been laid off and that foreign companies
have competed out domestically. This has led to
increased unemployment. However, the IMF and the World
Bank have taken up some of the criticism and are now
talking about the need for social reform.
Mozambique has long been heavily dependent on foreign
aid, but the large investments in extracting the
country's good natural resources are expected to mean
more and more for the country's economy. The
government's strategy to reduce poverty underlies much
of the aid. Budgetary policy is designed in
collaboration with the foreign donors, where Sweden
plays an important role.
The money that Mozambican abroad sends home to their
families is also important for the economy.
Government debt has been very large, but as part of
the World Bank and IMF debt relief programs for the
world's most debt-ridden countries, HIPC (Heavily
Indebted Poor Countries) and MDRI (Multilateral Debt
Relief Initiative), the country's debt has been written
down significantly.
FACTS - FINANCE
GDP per person
US $ 490 (2018)
Total GDP
US $ 14,458 million (2018)
GDP growth
3.3 percent (2018)
Agriculture's share of GDP
21.4 percent (2018)
Manufacturing industry's share of GDP
10.7 percent (2018)
The service sector's share of GDP
46.6 percent (2018)
Inflation
5.6 percent (2019)
Government debt's share of GDP
99.8 percent (2018)
External debt
US $ 12 010 million (2017)
Currency
Metical
Assistance per person
US $ 60 (2017)
2011
April
MDM's leaders take damage from their own campaign
The new opposition party MDM's campaign against corruption strikes back when
its MPs are revealed in a tangle of tax cheats with imported cars. Party leader
Daviz Simango is accused of promoting his own family and family within MDM.
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