The consulting firm Oxford Economics Africa revised upwards this Sunday the growth forecast for Mozambique this year, from 4.4% to 5.1%due to the “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 liquefied natural gas production on the offshore platform of the Rovuma basin and the recovery of agricultural production, so this higher growth expectations lead us to improve. The growth forecast is 5.1%, says the African department of Oxford Economics.
In the African department’s commentary on the third quarter growth figures, which show an expansion of 6.0% compared to the same period in 2022 and 2.9% compared to the previous quarter, analysts believe that the Coral South FLNG project could significantly increase gas production in Mozambique already 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, infrastructure investments will be needed related to the expansion of the energy network and the reconstruction of the damaged infrastructure in Cabo. Delgado will also sustain economic growth in the medium term,” reads the comment sent to investors and to which Lusa had access.
The TotalEnergies project in Cabo Delgado, the largest in the country, “It is only expected to restart in the first quarter of 2024, due to ongoing negotiations with contractors. and adjacent communities on the works,” writes Oxford Economics Africa.
Mozambique’s real Gross Domestic Product (GDP) grew by 5.92% in the third quarter, accumulating growth of 4.9% since the beginning of the year, the National Institute of Statistics (INE) announced on November 17.
According to the Quarterly National Accounts report, Mozambique’s real GDP, at market prices, was influenced in the third quarter by the primary sector, which grew by 12.9%, “with greater emphasis on the mining industry branch, with a variation of 43.18%”.
This was followed by agriculture, livestock, hunting, forestry and forestry, which grew by 3.53% in the same period.
The 5.92% growth in the third quarter also compares to 4.67% in the second quarter and 4.17% in the first quarter. In the third quarter of 2022, Mozambique’s real GDP had grown by 3.65%.
Source: TSF
