"National GDP Grows 0.12% in First Quarter" - INE

“PIB Nacional Cresce 0,12% no Primeiro Trimestre” – INE

Mozambique's Gross Domestic Product (GDP) grew again in the first three months of this year, up 0.12% compared to the same period in 2020after three quarters in decline, the National Institute of Statistics (INE) announced this Monday.

"The performance of economic activity in the first quarter of 2021 is primarily attributed to the primary sector, which grew by 0.251TP2Q," reads the note on the quarterly national accounts distributed this Monday.

The agriculture and related industry had the largest share (about a quarter) in economic activity, so its growth of 4.8% counterbalanced the decline in the mining industry, which retreated by 18.02%.

At the sector level, in addition to the mining industry, another sharp drop was recorded in the area of hotels and restaurants (-15.13%).

On the growth side, in addition to agriculture and related activities, financial services and fisheries and aquaculture stand out.

Mozambique's GDP shrinks by 1.3% in 2020 due to the impact of covid-19.

The first quarter had been the only one with year-on-year growth (1.71%), followed by the crisis caused by the pandemic: -3.54% (second quarter), -1.18% (third quarter) and -1.77% (fourth quarter).

The State Budget for 2021 foresees an economy growth of 2.1%, but the document was approved in late 2020, three months before rebels attacked Palma, Cabo Delgado, leading to the indefinite suspension of Total's gas project - the expected locomotive of the Mozambican economy.

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