Oxford Economics Africa today (26) revised upwards its growth forecast for Mozambique this year, from 4.4% to 5.1%, due to "surprising data" on the evolution of the economy in the third quarter.

"Mozambique's economic growth in the third quarter was higher than expected, essentially due to the continued increase in the production of liquefied natural gas on the off-shore platform of the Rovuma basin and the recovery of agricultural production, so this growth above expectations leads us to improve the growth forecast to 5.1%, says the African department of Oxford Economics, quoted by O Jornal Económico.

In the African department's commentary on the growth figures for the third quarter, which show an expansion of 6.0% compared to the same period in 2022 and 2.9% compared to the previous quarter, the analysts believe that the Coral South FLNG project could significantly increase gas production in Mozambique this year.

"According to our calculations, this project could increase total natural gas production by 65% this year, but in addition to developments in the gas sector, investments in infrastructure related to the expansion of the power grid and the reconstruction of damaged infrastructure in Cabo Delgado will also sustain economic growth in the medium term," reads the commentary sent to investors.

TotalEnergies' project in Cabo Delgado, the largest in the country, "is only expected to restart in the first quarter of 2024, due to ongoing negotiations with contractors and adjacent communities about the works," Oxford Economics Africa also writes.

Mozambique's real Gross Domestic Product (GDP) grew by 5.92% in the third quarter, accumulating a growth of 4.9% since the beginning of the year, the National Statistics Institute (INE) announced on November 17.