Financial operations between the Mozambican economy and the rest of the world last year resulted in a net inflow of funds of 2.2 billion dollars, compared to 5.5 billion dollars in the same period in 2022. This means a drop of 60.2% in the flow of operations.

According to the data contained in the quarterly Balance of Payments (BoP) bulletin recently released by the Bank of Mozambique (BdM), to which the MZNews had access to, the decrease recorded in the financial account was determined by the combined effect of the reduction in financial flows, especially Other Investment, by 51.2 %.

"In 2023, financial operations between the Mozambican economy and the rest of the world resulted in a net inflow of funds of 2.2 billion dollars, equivalent to 10.7% of GDP, compared to the 5.5 billion (30.2 % of GDP) recorded in 2022," reads the BdM document.

Looking at financial flows by instrument, the BoM report highlights that the financial account recorded an inflow of resources of 2.2 billion dollars (10.7 % of GDP), representing a decrease of 3.3 billion compared to the same period in 2022, mainly as a result of the reduction in financial liabilities in the Other Investment category by 51.2 % to 1.3 billion dollars.

Overall, Mozambique's net debtor position vis-à-vis the rest of the world, as measured by the IIP, improved by 1.4% to 67.6 billion dollars (more than 100% of GDP), due essentially to the 16% increase in foreign assets to 15.9 billion dollars, while foreign liabilities grew by 1.5% to a total of 83.6 billion dollars.