Mozambique Economic Outlook
National accounts data revealed that annual economic growth accelerated to 4.2% in Q4 from Q3’s 3.6%. Looking at the details of the release, agricultural and mining output accelerated; however, the downturn in manufacturing intensified. Shifting to this year, the panorama seems to be worsening: The PMI swung into contractionary territory in January due to cooling demand and weaker output. More positively, price pressures for both producers and consumers eased. In other news, on 3 February, the CEO of French energy company TotalEnergies visited the gas-producing Cabo Delgado province and met with President Nyusi. The company announced that an independent assessment of the security situation in the northern province would be completed by end-February. Peace in the area is required for the completion of infrastructure work critical to the gas sector.
Inflation came in at 9.8% in January, down from December’s 10.9%. The ongoing downtrend of price pressures prompted the Central Bank to maintain its key rate at 17.25% on 25 January. This year, inflation is forecast to decelerate further and average below the Bank’s 10.0% target.