Economy—overview: Before the peace accord of October 1992, Mozambique's economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries in the world. Since then, Mozambique has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized. Pending are tax and much needed commercial code reform, as well as greater private sector involvement in the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates stable. Albeit from a small base, Mozambique achieved one of the highest growth rates in the world in 1997-98. Still, the country depends on foreign assistance to balance the budget and to pay for a trade imbalance in which imports outnumber exports by three to one. The medium-term outlook for the country looks bright, as trade and transportation links to South Africa and the rest of the region are expected to improve and sizable foreign investments materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture (cotton, sugar), fishing, timber, and transportation services. Additional exports in these areas should bring in needed foreign exchange.

GDP: purchasing power parity—$16.8 billion (1998 est.)

GDP—real growth rate: 11% (1998 est.)

GDP—per capita: purchasing power parity—$900 (1998 est.)

GDP—composition by sector:
agriculture: 35%
industry: 13%
services: 52% (1996 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): -1.3% (1998 est.)

Labor force: NA

Labor force—by occupation: agriculture 80%, industry 9.5%, services 5.5%, wage earners working abroad 5% (1993 est)

Unemployment rate: NA

Budget:
revenues: $402 million
expenditures: $799 million, including capital expenditures of $NA (1997 est.)

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

Industrial production growth rate: 39% (1997)

Electricity—production: 426 million kWh (1997)

Electricity—production by source: NA%

Electricity—consumption: 1.11 billion kWh (1997)

Electricity—exports: 0 kWh (1996)

Electricity—imports: 685.6 million kWh (1997)

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

Exports: $295 million (f.o.b., 1998 est.)

Exports—commodities: shrimp 40%, cashews, cotton, sugar, copra, citrus (1997)

Exports—partners: Spain 17%, South Africa 16%, Portugal 12%, US 10%, Japan, Malawi, India, Zimbabwe (1996 est.)

Imports: $965 million (c.i.f., 1998 est.)

Imports—commodities: food, clothing, farm equipment, petroleum (1997)

Imports—partners: South Africa 55%, Zimbabwe 7%, Saudi Arabia 5%, Portugal 4%, US, Japan, India (1996 est.)

Debt—external: $5.7 billion (December 1997)

Economic aid—recipient: $1.115 billion (1995)

Currency: 1 metical (Mt) = 100 centavos

Exchange rates: meticais (Mt) per US$1—12,394.0 (January 1999), 11,874.6 (1998), 11.543.6 (1997), 11,293.8 (1996), 9,024.3 (1995), 6,038.6 (1994)

Fiscal year: calendar year