Mother Earth Travel > Country Index > Mozambique > Map Economy History |
| 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. A
value-added tax, introduced in 1999, launched the government's
comprehensive tax reform program. Pending are much needed commercial code
reform and greater private sector involvement in the transportation,
telecommunications, and energy sectors. Since 1996, inflation has been low
and foreign exchange rates relatively stable. Albeit from a small base,
Mozambique's economy grew at an annual 10% rate in 1997-99, one of the
highest growth rates in the world. Growth slowed and inflation rose in
2000 due to devastating flooding in the early part of the year. Both
indicators should recover in 2001. The country depends on foreign
assistance to balance the budget and to pay for a trade imbalance in which
imports greatly outnumber exports. The trade situation should improve in
the medium term, however, as trade and transportation links to South
Africa and the rest of the region have been improved and sizeable foreign
investments are beginning to materialize. Among these investments are
metal production (aluminum, steel), natural gas, power generation,
agriculture, fishing, timber, and transportation services. Mozambique has
received a formal cancellation of a large portion of its external debt
through an IMF initiative and is scheduled to receive additional relief. GDP: purchasing power parity
- $19.1 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Mozambique > Map Economy History