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Mozambique:
Economy

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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


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