Economy - overview Before the peace accord of October 1992, Mozambique had been devastated by civil war and was one of the poorest countries on the globe. Prospects subsequently improved, and with its solid economic performance in 1996-97, Mozambique has begun to exploit its sizable agricultural, hydropower, and transportation resources. Foreign assistance programs help supply the foreign exchange required to support the budget and pay for imports of goods and services. The restoration of electrical transmission lines to South Africa and the completion of a new transmission line to Zimbabwe (permitting the giant Cahora Bassa hydropower plant to export large amounts of electricity), proposed construction of a natural gas pipeline to South Africa, and reform of 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 700 state enterprises have been privatized, including the country's largest commercial bank and a number of sizable manufacturing firms. Other pending reform measures are the reform of tax collection and the facilitation of private enterprise in the transportation, energy, and telecommunications sectors.

GDP purchasing power parity - $14.6 billion (1997 est.)

GDP - real growth rate 8% (1997 est.)

GDP - per capita purchasing power parity - $800 (1997 est.)

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

Inflation rate - consumer price index 5.8% (1997)

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

Unemployment rate NA

Budget
revenues: $324 million
expenditures: $600 million, including capital expenditures of $310 million (1996 est.)

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

Industrial production growth rate NA

Electricity - capacity 2.358 million kW (1995)

Electricity - production 465 million kWh (1995)

Electricity - consumption per capita 73 kWh (1995)

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

Exports
total value: $226 million (f.o.b., 1996 est.)
commodities: shrimp 40%, cashews, cotton, sugar, copra, citrus
partners: Spain, South Africa, Japan, Portugal, US

Imports
total value: $802 million (c.i.f., 1996 est.)
commodities: food, clothing, farm equipment, petroleum
partners: South Africa 38%, US, Japan, Portugal, France

Debt - external $5.7 billion (December 1997)

Economic aid
recipient: ODA, $NA

Currency 1 metical (Mt) = 100 centavos

Exchange rates meticais (Mt) per US$1 - 11,635.0 (January 1998), 11.543.6 (1997), 11,293.8 (1996), 9,024.3 (1995), 6,038.6 (1994), 3,874.2 (1993)

Fiscal year calendar year

NOTE: The information regarding Mozambique on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mozambique Economy 1998 information contained here. All suggestions for corrections of any errors about Mozambique Economy 1998 should be addressed to the CIA.