The Mozambican Economy - Economic recovery likely to be postponed

Economic growth decelerated further in 2019

Mozambique’s economy has slowed markedly since 2016 when compared with the growth recorded in the previous decade. This deceleration came mainly as a result of the sharp drop in commodity prices, namely aluminum and coal (the country’s two main exports) and lower FDI in the country. Investor sentiment also deteriorated following the revelation in April 2016 of previously undisclosed public debt amounting to US$ 2 billion (17.5% of GDP) that lead to donor aid freezes and hindered economic activity further. Real GDP growth averaged 3.3% in the last four years (down from 6.7% in 2015). Still, apart from 2019, Mozambique continued to expand at a growth rate above the average in Sub-Saharan Africa, as economic activity in the region remained quite subdued in the period