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MARKET BRIEFING – MOZAMBIQUE
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 2000-03. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities.
Subsistence agriculture continues to employ the vast majority of the country's workforce. A substantial trade imbalance persists although the opening of the MOZAL aluminum smelter, the country's largest foreign investment project to date has increased exports 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 IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level.
Coal, titanium, natural gas, hydropower, tantalum, graphite are its major resources. There are some industries in the country, just as Food, beverages, chemicals (fertilizer, soap, paints), petroleum products, textiles, cement, glass, asbestos, tobacco, etc.
| 2004 MAJOR ECONOMIC INDICATORS | |
| Gross Domestic Product (Billions USD) | 5.4 |
| Real GDP growth (%) | 8.2% |
| GDP per capita (current USD) | 210 |
| Inflation (%) | 12.8% |
| Land area (sq km) | 799,380 |
| Population (Million) | 19.2 |
FOREIGN TRADE FROM 2002 TO 2004(Unit: Billion U.S. dollars)
| Year | Total Trade | Exports | Imports |
| 2002 | 1895 | 679.3 | 1215.7 |
| 2003 | 2108.4 | 880.2 | 1228.2 |
| 2004 | 2683.1 | 1258.9 | 1424.2 |
| Principal Exports (2004) | US m |
| Aluminum | 519 |
| Prawns | 64 |
| Cashew nuts & raw cashew | 17 |
| Manufacture | 15 |
| Principal Imports (2004) | US m |
| Machinery & equipment | 139.0 |
| Vehicles, transport equipment & spare parts | 113.8 |
| Fuel | 92.3 |
| Textiles | 43.4 |
|
Main Destinations of Exports (2004)
|
% of total
|
Main Destinations of Imports (2004)
|
% of total
|
| Belgium | 30.0 | South Africa | 34.5 |
| South Africa | 17.3 | Australia | 10.4 |
| Italy | 11.6 | USA | 5.1 |
| Spain | 11.3 | Portugal | 5.0 |
MAINLAND CHINA-MOZAMBIQUE BILATERAL TRADE
|
Year
|
Total
|
Exports
|
Imports
|
|
2002
|
4,849
|
2,593
|
2,668
|
|
2003
|
7,171
|
4,503
|
2,668
|
|
2004
|
11,944
|
7,515
|
4,429
|
SOURCE:
The Ministry of Foreign Affairs of the People's Republic of China
http://www.fmprc.gov.cn/chn/
The Ministry of Commerce of the People's Republic of China
http://www.mofcom.gov.cn/
Economic and Trade Office of the Consulate-General of the People's Republic of China in Mozambique
http://mz.mofcom.gov.cn/index.shtml
Macao Statistics and Census Service
http://www.dsec.gov.mo/c_index.html
Macao Economic Services
http://www.economia.gov.mo/
The Economist Intelligence Unit
http://www.ipim.gov.mo/cn/index2.asp
