Mozambique's Gross Domestic Product (GDP) grew by 1.97% in the second quarter of this year, compared to the same period in 2020, according to data from the National Statistics Institute (INE) consulted on Monday by Lusa.

It is the second consecutive quarter of growth, following a 0.12% rise in the first quarter of 2021, signaling a recovery from the crisis caused by the covid-19 pandemic.

"The performance of economic activity in the second quarter of 2021 is attributed first and foremost to the tertiary sector, which grew by 2.82%, most notably the Hotel and Restaurant industry with a change of 4.03%," INE notes.

The jump also reflects the fact that this has so far been one of the sectors hardest hit by the effects of the pandemic.

All industries recorded growth in the second quarter, with the exception of electricity and water supply, which fell by 9.771TP2Q.

In cumulative terms, Mozambique's GDP registered a growth of 1.05% in the first half of 2021.

The State Budget for 2021 foresees a growth in the economy of 2.1%, but the document was approved in late 2020, three months before the indefinite suspension of Total's gas project in the north of the country due to insecurity in Cabo Delgado province.

Lusa Agency