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    Mozambique Index 2006

    Mozambique Main Index

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    Mozambique Economy - 2006

      Economy - overview:
      At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. 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. In spite of these gains, Mozambique remains dependent upon foreign assistance for much of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country's largest foreign investment project to date, has increased export earnings. In late 2005, and after years of negotiations, the government signed an agreement to gain Portugal's majority share of the Cahora Bassa Hydroelectricity (HCB) company, a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More power is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could 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.

      GDP (purchasing power parity):
      $25.66 billion (2005 est.)

      GDP (official exchange rate):
      $5.79 billion (2005 est.)

      GDP - real growth rate:
      7.2% (2005 est.)

      GDP - per capita (PPP):
      $1,300 (2005 est.)

      GDP - composition by sector:
      agriculture: 24.2%
      industry: 41.2%
      services: 34.6% (2005 est.)

      Labor force:
      9.2 million (2000 est.)

      Labor force - by occupation:
      agriculture: 81%
      industry: 6%
      services: 13% (1997 est.)

      Unemployment rate:
      21% (1997 est.)

      Population below poverty line:
      70% (2001 est.)

      Household income or consumption by percentage share:
      lowest 10%: 2.5%
      highest 10%: 31.7% (1997)

      Distribution of family income - Gini index:
      39.6 (1996-97)

      Inflation rate (consumer prices):
      7.8% (2005 est.)

      Investment (gross fixed):
      44.8% of GDP (2005 est.)

      revenues: $1.031 billion
      expenditures: $1.93 billion (2005 est.)

      Agriculture - products:
      cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry

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

      Industrial production growth rate:
      3.4% (2000)

      Electricity - production:
      15.14 billion kWh (2003)

      Electricity - consumption:
      10.46 billion kWh (2003)

      Electricity - exports:
      9.5 billion kWh (2003)

      Electricity - imports:
      5.875 billion kWh (2003)

      Oil - production:
      0 bbl/day (2003 est.)

      Oil - consumption:
      11,000 bbl/day (2003 est.)

      Oil - exports:
      NA bbl/day

      Oil - imports:
      NA bbl/day

      Oil - proved reserves:
      0 bbl (1 January 2002)

      Natural gas - production:
      60 million cu m (2003 est.)

      Natural gas - consumption:
      60 million cu m (2003 est.)

      Natural gas - exports:
      0 cu m (2001 est.)

      Natural gas - imports:
      0 cu m (2001 est.)

      Natural gas - proved reserves:
      127.4 billion cu m (1 January 2002)

      Current account balance:
      -$530.9 million (2005 est.)

      $1.69 billion f.o.b. (2005 est.)

      Exports - commodities:
      aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity

      Exports - partners:
      Netherlands 60.9%, South Africa 12.9%, Malawi 3.3% (2004)

      $2.041 billion f.o.b. (2005 est.)

      Imports - commodities:
      machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles

      Imports - partners:
      South Africa 41.4%, Netherlands 11%, Portugal 3.3% (2004)

      Reserves of foreign exchange and gold:
      $1.227 billion (2005 est.)

      Debt - external:
      $966 million (2002 est.)

      Economic aid - recipient:
      $632.8 million (2001)

      Currency (code):
      metical (MZM)

      Exchange rates:
      meticais per US dollar - 23,061 (2005), 22,581 (2004), 23,782 (2003), 23,678 (2002), 20,704 (2001)

      Fiscal year:
      calendar year

      NOTE: The information regarding Mozambique on this page is re-published from the 2006 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mozambique Economy 2006 information contained here. All suggestions for corrections of any errors about Mozambique Economy 2006 should be addressed to the CIA.

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    Revised 06-Jun-06
    Copyright © 2006 Photius Coutsoukis (all rights reserved)