Economy of Mozambique
| Economy - overview: | 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 although it returned to double digits in 2000-06. 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. In late 2005, and after years of negotiations, the government signed an agreement to gain 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. |
| GDP (purchasing power parity): | $29.17 billion (2006 est.) |
| GDP (official exchange rate): | $6.323 billion (2006 est.) |
| GDP - real growth rate: | 7.9% (2006 est.) |
| GDP - per capita (PPP): | $1,500 (2006 est.) |
| GDP - composition by sector: | agriculture: 21.1% industry: 30.9% services: 48% (2006 est.) |
| Labor force: | 9.4 million (2006 est.) |
| Labor force - by occupation: | agriculture: 81% industry: 6% services: 13% (1997 est.) |
| Unemployment rate: | 21% (1997 est.) |
| Population below poverty line: | 70% (2001 est.) |
| Household income or consumption by percentage share: | lowest 10%: 2.5% highest 10%: 31.7% (1997) |
| Distribution of family income - Gini index: | 39.6 (1996-97) |
| Inflation rate (consumer prices): | 12.8% (2006 est.) |
| Investment (gross fixed): | 21.5% of GDP (2006 est.) |
| Budget: | revenues: $1.391 billion expenditures: $1.822 billion (2006 est.) |
| Public debt: | 23.2% of GDP (2006 est.) |
| Agriculture - products: | cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry |
| Industries: | food, beverages, chemicals (fertilizer, soap, paints), aluminum, petroleum products, textiles, cement, glass, asbestos, tobacco |
| Industrial production growth rate: | 3.4% (2000) |
| Electricity - production: | 11.58 billion kWh (2004) |
| Electricity - production by source: | fossil fuel: 2.9% hydro: 97.1% nuclear: 0% other: 0% (2001) |
| Electricity - consumption: | 9.592 billion kWh (2004) |
| Electricity - exports: | 8.75 billion kWh (2004) |
| Electricity - imports: | 7.576 billion kWh (2004) |
| Oil - production: | 0 bbl/day (2004 est.) |
| Oil - consumption: | 11,500 bbl/day (2004 est.) |
| Oil - exports: | NA bbl/day |
| Oil - imports: | NA bbl/day |
| Oil - proved reserves: | 0 bbl (1 January 2005) |
| Natural gas - production: | 80 million cu m (2004 est.) |
| Natural gas - consumption: | 80 million cu m (2004 est.) |
| Natural gas - exports: | 0 cu m (2004 est.) |
| Natural gas - imports: | 0 cu m (2004 est.) |
| Natural gas - proved reserves: | 127.4 billion cu m (1 January 2005 est.) |
| Current account balance: | -$444.4 million (2006 est.) |
| Exports: | $2.429 billion f.o.b. (2006 est.) |
| Exports - commodities: | aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity |
| Exports - partners: | Belgium 29.3%, Italy 22%, Spain 12.7%, China 4.1% (2006) |
| Imports: | $2.815 billion f.o.b. (2006 est.) |
| Imports - commodities: | machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles |
| Imports - partners: | South Africa 35.9%, Australia 9.4%, China 5% (2006) |
| Reserves of foreign exchange and gold: | $1.353 billion (2006 est.) |
| Debt - external: | $2.392 billion (2006 est.) |
| Economic aid - recipient: | $632.8 million (2001) |
| Currency (code): | metical (MZM) |
| Currency code: | MZM |
| Exchange rates: | meticais per US dollar - 25.4 (2006), 23,061 (2005), 22,581 (2004), 23,782 (2003), 23,678 (2002) note: in 2006 Mozambique revalued its currency, with 1000 old meticais equal to 1 new meticais |
| Fiscal year: | calendar year |