Mozambique/Economy

Economy - overview: Before the peace accord of October 1992, Mozambique's economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries in the world. Since then, Mozambique has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized. Pending are tax and much needed commercial code reform, as well as greater private sector involvement in the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates stable. Albeit from a small base, Mozambique's economy grew at an annual 10% rate in 1997-99, one of the highest growth rates in the world. Still, the country depends on foreign assistance to balance the budget and to pay for a trade imbalance in which imports outnumber exports by five to one or more. The medium-term outlook for the country looks bright, as trade and transportation links to South Africa and the rest of the region are expected to improve and sizable foreign investments materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture (cotton, sugar), fishing, timber, and transportation services. Additional exports in these areas should bring in needed foreign exchange. In addition, Mozambique is on track to receive a formal cancellation of a large portion of its external debt through a World Bank initiative.

GDP: purchasing power parity - $18.7 billion (1999 est.)

GDP - real growth rate: 10% (1999 est.)

GDP - per capita: purchasing power parity - $1,000 (1999 est.)

GDP - composition by sector:
agriculture: 34%
industry: 18%
services: 48% (1998 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 4% (1999 est.)

Labor force: NA

Labor force - by occupation: agriculture 81%, industry 6%, services 13% (1997 est.)

Unemployment rate: NA%

Budget:
revenues: $402 million
expenditures: $799 million, including capital expenditures of $NA (1997 est.)

Industries: food, beverages, chemicals (fertilizer, soap, paints), petroleum products, textiles, cement, glass, asbestos, tobacco

Industrial production growth rate: 39% (1997)

Electricity - production: 1.2 billion kWh (1998)

Electricity - production by source:
fossil fuel: 25%
hydro: 75%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 1.018 billion kWh (1998)

Electricity - exports: 483 million kWh (1998)

Electricity - imports: 385 million kWh (1998)

Agriculture - products: cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice, tropical fruits; beef, poultry

Exports: $300 million (f.o.b., 1999 est.)

Exports - commodities: prawns 40%, cashews, cotton, sugar, copra, citrus, coconuts, timber (1997)

Exports - partners: Spain 17%, South Africa 16%, Portugal 12%, US 10%, Japan, Malawi, India, Zimbabwe (1996 est.)

Imports: $1.6 billion (c.i.f., 1999 est.)

Imports - commodities: food, clothing, farm equipment, petroleum, transport equipment (1997)

Imports - partners: South Africa 55%, Zimbabwe 7%, Saudi Arabia 5%, Portugal 4%, US, Japan, India (1996 est.)

Debt - external: $4.8 billion (1999)

Economic aid - recipient: $1.115 billion (1995)

Currency: 1 metical (Mt) = 100 centavos

Exchange rates: meticais (Mt) per US$1 - 13,392.0 (January 2000), 12,775.1 (1999), 11,874.6 (1998), 11.543.6 (1997), 11,293.8 (1996), 9,024.3 (1995)

Fiscal year: calendar year