The economic growth in Mozambique in 2016 is expected to be 3.6%, the lowest recorded in the last fifteen years by that Portuguese-speaking African country, according to a December report from the Economist Intelligence Unit (EIU).
The EIU report says, however, that Mozambique’s GDP growth in 2017 is expected to be 4.2% as a result of increased productivity of the mining sector, in particular the coal industry whose international prices have been rising.
Also according to the EIU, published in London, due to rising international prices of titanium, the exploration of this ore will grow and thus benefit economic growth.
The report notes that in 2018 GDP is expected to grow 4.6%, which will rise to 5.3% in 2019, 5.1% in 2020 and 5.5% in 2021 and will be below the average of 7.3% recorded in the period between 2005 and 2015.
Given the economic and financial situation of Mozambique, the EIU believes that there will be no major investment in the services and construction sectors, but notes that as of 2018, as a result of private investments, these two sectors will return to growth. MDT/Macauhub