Mozambique:
Economy

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Other pages in this profile of Mozambique:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. 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, have led to dramatic improvements in the country's growth rate. Inflation was reduced to single digits during the late 1990s, and although it returned to double digits in 2000-06, in 2007 inflation had slowed to 8%, while GDP growth reached 7.5%. 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, Mozambique remains dependent upon foreign assistance for much of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country's largest foreign investment project to date, has increased export earnings. At the end of 2007, and after years of negotiations, the government took over Portugal's majority share of the Cahora Bassa Hydroelectricity (HCB) company, a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More power is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. In July 2007 the Millennium Challenge Corporation (MCC) signed a Compact with Mozambique; the Mozambican government moved rapidly to ratify the Compact and propose a plan for funding.
GDP (purchasing power parity)	Definition - World rank and map $17.02 billion (2007 est.)
GDP (official exchange rate)	Definition $7.559 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 7% (2007 est.)
GDP - per capita	Definition - World rank and map $800 (2007 est.)
GDP - composition by sector	Definition agriculture: 23% industry: 30.1% services: 46.8% (2007 est.)
Labor force	Definition 9.6 million (2007 est.)
Labor force - by occupation	Definition agriculture: 81% industry: 6% services: 13% (1997 est.)
Unemployment rate	Definition - World rank and map 21% (1997 est.)
Population below poverty line	Definition 70% (2001 est.)
Household income or consumption by percentage share	Definition lowest 10%: 2.1% highest 10%: 39.4% (2002)
Distribution of family income - Gini index	Definition - World rank and map 47.3 (2002)
Inflation rate (consumer prices)	Definition - World rank and map 7.9% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 20.5% of GDP (2007 est.)
Budget	Definition revenues: $2.325 billion expenditures: $2.773 billion (2007 est.)
Public debt	Definition - World rank and map 22.2% of GDP (2007 est.)
Agriculture - products	Definition cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry
Industries	Definition food, beverages, chemicals (fertilizer, soap, paints), aluminum, petroleum products, textiles, cement, glass, asbestos, tobacco
Industrial production growth rate	Definition - World rank and map 10% (2007 est.)
Electricity - production	Definition - World rank and map 13.17 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 9.127 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 428.9 kWh (2005)
Electricity - exports	Definition 12 billion kWh (2005)
Electricity - imports	Definition 9.588 billion kWh (2005)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 13,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 0.6 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 0 bbl/day (2004)
Oil - imports	Definition - World rank and map 13,320 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 191.8 million cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 191.8 million cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 9 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 122.2 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$713 million (2007 est.)
Exports	Definition - World rank and map $2.699 billion f.o.b. (2007 est.)
Exports - commodities	Definition aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity
Exports - partners	Definition Italy 19.6%, Belgium 18.6%, South Africa 16.5%, Spain 12.6%, China 4.1% (2006)
Imports	Definition - World rank and map $2.997 billion f.o.b. (2007 est.)
Imports - commodities	Definition machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles
Imports - partners	Definition South Africa 36.8%, Australia 6.1%, China 4.6% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $1.445 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $4.168 billion (31 December 2007 est.)
Market value of publicly traded shares	Definition $NA
Economic aid - recipient	Definition $1.286 billion (2005)
Currency (code)	Definition metical (MZM)
Exchange rates	Definition meticais per US dollar - 26.264 (2007), 25.4 (2006), 23,061 (2005), 22,581 (2004), 23,782 (2003) note: in 2006 Mozambique revalued its currency, with 1000 old meticais equal to 1 new meticais
Fiscal year	Definition calendar year

Mozambique: Economy

Mozambique:
Economy