Mozambique Economy 1997

Economy - overview One of Africa's poorest countries, Mozambique has failed to exploitthe economic potential of its sizable agricultural, hydropower, and transportationresources. Agricultural output is at only 75% of its 1981 level, and grainhas to be imported. Industry operates at only 20%-40% of capacity. Foreignassistance programs supply the foreign exchange required to pay for importsof goods and services. The peace accord, signed in October 1992, has improvedMozambique's prospects. The restoration of electrical transmission lines toSouth Africa and the completion of a new transmission line to Zimbabwe (permittingthe giant Cahora Bassa hydropower plant to export large amounts of electricity),proposed construction of a natural gas pipeline to South Africa, and reformof transportation services will greatly improve foreign exchange receipts.The Mozambique and South African governments are developing the Maputo corridor,linking the port of Maputo with Witbank, South Africa. In the past few years,more than 500 state enterprises have been privatized, including the country'slargest commercial bank and a number of sizable manufacturing firms. Otherpending reform measures are the privatization of customs operations, the reformof tax collection, and the facilitation of private enterprise in the transportation,energy, and telecommunications sectors.

GDP purchasing power parity - $12.2 billion (1995 est.)

GDP - real growth rate 3% (1995 est.)

GDP - per capita purchasing power parity - $670 (1995 est.)

GDP - composition by sector
agriculture: 33%
industry: 12%
services : 55% (1994 est.)

Inflation rate - consumer price index 22% (1996 est.)

Labor force NA
by occupation: 80% engaged in agriculture
note: in 1993, 47% of the wage earners were employed in industry, 28% in transportationand communication; traditionally, a large number of Mozambicans work abroad

Unemployment rate 50% (1989 est.)

Budget
revenues: $252 million
expenditures : $607 million, including capital expenditures of $NA (1992 est.)

Industries food, beverages, chemicals (fertilizer, soap, paints), petroleum products,textiles, cement, glass, asbestos, tobacco

Industrial production growth rate 5.8% (1993 est.)

Electricity - capacity 2.36 million kW (1994)

Electricity - production 490 million kWh (1994)

Electricity - consumption per capita 45 kWh (1993)

Agriculture - products cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice,tropical fruits; beef, poultry

Exports
total value : $169 million (f.o.b., 1995)
commodities: shrimp 40%, cashews, cotton, sugar, copra, citrus
partners: Spain, South Africa, US, Portugal, Japan

Imports
total value: $784 million (c.i.f., 1995)
commodities : food, clothing, farm equipment, petroleum
partners: South Africa 44%, UK, France, Japan, Portugal

Debt - external $5.5 billion (1995)

Economic aid
recipient : ODA, $NA

Currency 1 metical (Mt) = 100 centavos

Exchange rates meticais (Mt) per US$1 - 11,455.0 (December 1996), 11,293.8 (1996),9,024.3 (1995), 6,038.6 (1994), 3,874.2 (1993), 2,516.5 (1992)

Fiscal year calendar year

NOTE: The information regarding Mozambique on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mozambique Economy 1997 information contained here. All suggestions for corrections of any errors about Mozambique Economy 1997 should be addressed to the CIA.