London, England — 09 October 2013 – Mozambique’s gross domestic product (GDP) is expected to post growth of 7.1% in 2013 and reach a peak of 15% in 2020, with mining as a major contributor in what would be the world’s fastest growing economy over the next decade.
Stating this in a report on perception of risk in Mozambique, published this month, Business Monitor International (BMI) said that GDP growth would be 7.1% this year and that it expected “economic growth to accelerate in 2014 to a peak of 15% in 2020,” when it believes that Mozambique will “launch production of the gas recently found on its northern coast.”
Macauhub News Agency reports that the risk analysis also said that “the Mozambican monetary authorities are going to wait to see how quickly the economy recovers from the floods,” at the beginning of this year, before lowering base interest rates, which “remain at 9%, and projects inflation of 6.4% in 2014 “due to a weak rand.”
In terms of risks that the Mozambican economy faces, the British agency notes the vulnerability of the agricultural sector to adverse weather, “specifically either too much or too little rain,” and “an inability to deal with ineffective infrastructure,” that are currently unable to support “exports of the country’s natural resources to foreign markets.”
Although it has an “optimistic view” of the Mozambican economy, BMI says it fears that a lack of infrastructure may negatively affect exports, which “will be the main engine driving growth over the next few years.”
Despite this, in another report BMI said that the Mozambican economy would be the fastest growing economy in the world in the next decade, with accumulated GDP growth of 158.8% by 2022, or almost twice the projection for China (80.6%).
Source: Macauhub News Agency. For more information, click here.