Economy of Mozambique

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Economy of Mozambique

Maputo City, capital and financial center of Mozambique
Currency	Mozambican metical (MZN)
Fiscal year	Calendar Year
Trade organisations	AU, AfCFTA (signed), African Development Bank, SADC, World Bank, IMF, WTO, Group of 77
Country group	Least Developed[1] Low-income economy[2]
Statistics
GDP	$14.396 billion (nominal, 2018 est.)[3] $39.183 billion (PPP, 2018 est.)[3]
GDP growth	3.7% (2017) 3.4% (2018) 2.0% (2019e) 3.7% (2020f)[4]
GDP per capita	$475 (nominal, 2018 est.)[3] $1,292 (PPP, 2018 est.)[3]
GDP by sector	agriculture: 29.5% industry: 23.9% services: 46.5% (2012 est.)
Inflation (CPI)	3.911% (2018)[3]
Population below poverty line	52% (2009 est.)
Human Development Index	0.446 low (2021)[5] (185th) 0.300 low IHDI (2021)[6]
Labour force	10.1 million (2012 est.)
Labour force by occupation	agriculture: 77% industry: 8% Tertiary sector
Unemployment	17% (2007 est.)
Main industries	aluminum, coal, petroleum products, chemicals (fertilizer, soap, paints), cement, asbestos, glass, textiles, tobacco, food processing, beverages
External
Exports	$11.7 billion (2022)
Export goods	aluminum, coal, bulk electricity, lumber, cotton, prawns, cashews, sugar, citrus
Main export partners	European Union 24.81%  India 22.4%  South Africa 9.15%  South Korea 8.18%  China 5.81%  United Arab Emirates 4.95%  Singapore 3.22%  United Kingdom 2.99%  Zimbabwe 2.88%  United States 1.48% (2022)[7]
Imports	$23.1 billion (2022)
Import goods	fuel, chemicals, machinery, vehicles, metal products, textiles, food
Main import partners	South Africa 23.5%  South Korea 19.9%  China 12%  India 10.1%  European Union 4.61%  DR Congo 4.58%  Singapore 4.06%  Malaysia 2.72%  Australia 2.37%  United Arab Emirates 2.18% (2022)[8]
Gross external debt	$7.79 billion (2014 est.)
Public finances
Government debt	34.6% of GDP (2012 est.)
Budget balance	-4.0% of GDP (2012 est.)
Revenues	$4.315 billion (2012 est.)
Expenses	$4.904 billion (2012 est.)
Credit rating	Standard & Poor's:[9] B+ (Domestic) B+ (Foreign) B+ (T&C Assessment) Outlook: Stable[10] Fitch:[10] B Outlook: Stable
Foreign reserves	$2.77 billion (31 December 2012 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Mozambique is $14.396 billion by gross domestic product as of 2018, and has developed since the end of the Mozambican Civil War (1977–1992). In 1987, the government embarked on a series of macroeconomic reforms, which were 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 brought to single digits during the late 1990s, although it returned to double digits in 2000–02. 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. Subsistence agriculture continues to employ the vast majority of the country's workforce. A substantial trade imbalance persists. However, the opening of the Mozal aluminium smelter, the country's largest foreign investment project to date, has increased export earnings. Additional investment projects in titanium extraction and processing and garment manufacturing should further close the import/export gap. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the International Monetary Fund's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. Mozambique is a least developed country according to United Nations.