Mozambique Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist policies, economic mismanagement, and a brutal civil war from 1977 to 1992 further impoverished the country. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, propelled the country’s GDP, in purchasing power parity terms, from $4 billion in 1993 to about $37 billion in 2017. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, about half the population remains below the poverty line and subsistence agriculture continues to employ the vast majority of the country's work force.

 

Mozambique's once substantial foreign debt was reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives. However, in 2016, information surfaced revealing that the Mozambican Government was responsible for over $2 billion in government-backed loans secured between 2012-14 by state-owned defense and security companies without parliamentary approval or national budget inclusion; this prompted the IMF and international donors to halt direct budget support to the Government of Mozambique. An international audit was performed on Mozambique’s debt in 2016-17, but debt restructuring and resumption of donor support have yet to occur.

 

Mozambique grew at an average annual rate of 6%-8% in the decade leading up to 2015, one of Africa's strongest performances, but the sizable external debt burden, donor withdrawal, elevated inflation, and currency depreciation contributed to slower growth in 2016-17.

 

Two major International consortiums, led by American companies ExxonMobil and Anadarko, are seeking approval to develop massive natural gas deposits off the coast of Cabo Delgado province, in what has the potential to become the largest infrastructure project in Africa. . The government predicts sales of liquefied natural gas from these projects could generate several billion dollars in revenues annually sometime after 2022.

Real GDP (purchasing power parity)

$38.42 billion (2020 est.)

$38.91 billion (2019 est.)

$38.04 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

3.11% (2018 est.)

3.7% (2017 est.)

4.07% (2017 est.)

Real GDP per capita

$1,200 (2020 est.)

$1,300 (2019 est.)

$1,300 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$14.964 billion (2019 est.)

Inflation rate (consumer prices)

2.7% (2019 est.)

3.9% (2018 est.)

15.4% (2017 est.)

Credit ratings

Fitch rating: CCC (2019)

Moody's rating: Caa2 (2019)

Standard & Poors rating: CCC+ (2019)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 23.9% (2017 est.)

industry: 19.3% (2017 est.)

services: 56.8% (2017 est.)

GDP - composition, by end use

household consumption: 69.7% (2017 est.)

government consumption: 27.2% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: 13.9% (2017 est.)

exports of goods and services: 38.3% (2017 est.)

imports of goods and services: -70.6% (2017 est.)

Agricultural products

sugar cane, cassava, maize, milk, bananas, tomatoes, sweet potatoes, rice, sorghum, potatoes

Industries

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

Industrial production growth rate

4.9% (2017 est.)

Labor force

12.9 million (2017 est.)

Labor force - by occupation

agriculture: 74.4%

industry: 3.9%

services: 21.7% (2015 est.)

Unemployment rate

24.5% (2017 est.)

25% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 7.4%

male: 7.7%

female: 7.1% (2015 est.)

Population below poverty line

46.1% (2014 est.)

Gini Index coefficient - distribution of family income

54 (2014 est.)

47.3 (2002)

Household income or consumption by percentage share

lowest 10%: 1.9%

highest 10%: 36.7% (2008)

Budget

revenues: 3.356 billion (2017 est.)

expenditures: 4.054 billion (2017 est.)

Budget surplus (+) or deficit (-)

-5.6% (of GDP) (2017 est.)

Public debt

102.1% of GDP (2017 est.)

121.6% of GDP (2016 est.)

Taxes and other revenues

26.7% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$3.025 billion (2019 est.)

-$4.499 billion (2018 est.)

Exports

$4.35 billion (2020 est.) note: data are in current year dollars

$5.6 billion (2019 est.) note: data are in current year dollars

$5.97 billion (2018 est.) note: data are in current year dollars

Exports - partners

South Africa 16%, India 13%, China 12%, Italy 7%, United Arab Emirates 5%, Germany 5% (2019)

Exports - commodities

coal, aluminum, natural gas, tobacco, electricity, gold, lumber (2019)

Imports

$8.38 billion (2020 est.) note: data are in current year dollars

$9.57 billion (2019 est.) note: data are in current year dollars

$10.52 billion (2018 est.) note: data are in current year dollars

Imports - partners

South Africa 31%, India 18%, China 17% (2019)

Imports - commodities

refined petroleum, chromium, iron, bauxite, electricity (2019)

Reserves of foreign exchange and gold

$3.361 billion (31 December 2017 est.)

$2.081 billion (31 December 2016 est.)

Debt - external

$10.91 billion (31 December 2017 est.)

$10.48 billion (31 December 2016 est.)

Exchange rates

meticais (MZM) per US dollar -

74.12 (2020 est.)

63.885 (2019 est.)

61.625 (2018 est.)

39.983 (2014 est.)

31.367 (2013 est.)

NOTE: The information regarding Mozambique on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Mozambique 2022 information contained here. All suggestions for corrections of any errors about Mozambique 2022 should be addressed to the CIA or the source cited on each page.