Mozambique economic review

Mozambique's economic landscape is showing signs of resilience and growth despite facing various challenges both internally and externally. Celio Hamide, Head of Sales and Global Markets at Standard Bank, provided insights into the current economic activities in Mozambique during a recent interview with CNBC Africa. The country's GDP has seen a significant acceleration, standing at 4.7%, showcasing positive momentum compared to previous years. However, there has been a slight reduction of 4% in exports, particularly in the sectors of aluminium and energy due to fluctuations in commodity prices globally. Despite this, coal exports have shown a promising increase of 27%, contributing positively to the overall export volumes. On the import side, Mozambique has witnessed a decrease in imports by 48%, mainly attributed to capital goods procurement for large-scale projects in the energy sector. Excluding these major capital goods purchases, there has been a minor increase of 7% in import volumes. The balance of payment perspective reflects a positive outlook for Mozambique, with strong indicators of growth and stability. The inflation rate in the country has been largely under control, thanks to proactive measures taken by the central bank. Tight monetary policies and reserve requirements have helped in maintaining inflation at moderate levels, with prices stabilizing in key sectors such as food and transport. Despite global uncertainties and risks, including geopolitical tensions and fluctuating commodity prices, Mozambique's currency is expected to remain stable and unchanged in the near future. The country's balance of payments reflects a slight deficit, but efforts to manage this effectively are underway. Looking ahead, Mozambique anticipates continued economic growth and stability, with upcoming presidential elections adding to the overall economic activities in the country. The outlook for Mozambique's economy appears optimistic, showcasing resilience and potential for further development amidst a challenging global landscape.