Economic growth in Mozambique is expected to stand at 5% according to the forecasts of the Economic and Social Plan and State Budget (PESOE), which predicts the highest performance from the Extractive Industry.

The PESOE growth forecast "will be sustained by the positive performance of the extractive industry, with 23.1%", says the Ministry of Economy and Finance (MEF) which, using data from the National Statistics Institute (INE), predicts a growth in Gross Domestic Product (GDP) of around 4.42% in the first half of 2023, compared to 4.37% in the same period of 2022.

The information is contained in the PESOE Balance Sheet for the first six months of the year, released this week by the MEF.

The performance of extractive industries for 2023 "will be supported by increased production of ruby, coal, heavy sands (ilmenite, zircon and rutile), natural gas and construction materials," the document reads.

To date, the extractive sector has recorded a realization rate of 55% compared to the annual plan, despite a drop of 0.7% compared to the same period in 2022. This comparative result has been influenced by fluctuations in the price trends of mineral coal - with the greatest weight in the overall structure (54%) - on the international market; rains and cyclone 'Freddy'; stoppage of activities at some mining companies, with the greatest weight for ruby and gold; and the poor performance of the largest ruby producer, due to the terrorist attack on its facilities in October 2022.

The other sectors with a significant contribution to the PESOE are: health and social action (8.7%), agriculture (5.2%), construction (5.0%), public administration, defense and social security (3.8%), education (3.5%), transport and communications (3.2%), manufacturing and fisheries, both with (2.5%).

According to the document, the results for the first half of the year are attributed primarily to the primary sector, which grew by 8,98%, with the Mining Industry standing out with a variation of 42,71%, followed by the Agriculture, Livestock, Hunting, Forestry and Logging sector with around 3,11%;

This was followed by the tertiary sector, which recorded a variation of 4,24%, with the Transport, Storage and Support Activities for Transport and Information and Communications branch standing out with a variation of 6,85%, followed by the Hotels and Restaurants branch with a variation of 5,51%. The Financial Services branch had a variation of 3,40%.

Lastly, the tertiary sector, where there was a negative variation of minus 6,52%, led by the Construction sector with a negative variation of minus 10,43%, followed by the Manufacturing sector with a variation of minus 7,72% and lastly, the Electricity, Gas and Water Distribution sector with a negative variation of minus 0,18%.