Mozambique: - Mozambican Economy Grew By Five Per Cent in 2023

Maputo — The Mozambican economy grew by five per cent in 2023, compared to 4.4 per cent in 2022, driven by the extractive industry, tourism, agriculture, transport and communications.

The figure comes from the balance of the Economic and Social Plan and the State Budget (PESOE), a document approved in Maputo on Tuesday by the Council of Ministers (Cabinet).

The spokesperson for the meeting, the Deputy Minister of Industry and Trade, Ludovina Bernardo, said at the usual press briefing, "The performance represents the continuation of a positive trend observed over the last four years, with good economic prospects in the medium and long term'.

The growth is also, she added, the result of the implementation of the economic reform measures underway, adopted by the government, "which have boosted economic activity in the private sector and attracted new investment.'

She said that average annual inflation has fallen to 7.1 per cent, against an initial forecast of 11.5 per cent.

Net international reserves were above the three months forecast in the PESOE, and reached the 4.3 months mark for covering imports of goods and non-factor services.

According to Bernardo, this translated into "greater credibility and greater capacity to absorb shocks to the balance of payments.'

In the period under review, state revenue contributed around 70 per cent of internal resources, compared to 64.3 per cent in 2022, which, according to Bernardo, represents a trend towards long-term budget sustainability.

"It is the result of the government's efforts to improve revenue collection', she claimed.

Also in 2023, state revenue grew by 14.2 per cent, corresponding to 91.4 per cent of the forecast, while public spending grew by 7.5 per cent, which represents 97.4 per cent of the forecast.

At the same meeting, the Council of Ministers approved the regulation on the registration of legal entities.

The regulation provides for the introduction of the register of beneficial owners, as a crucial step towards aligning the legal provisions with the Law on Money Laundering and Financing of Terrorism, as well as with the Commercial Code.

"The inclusion of the beneficial owner register is essential for strengthening the transparency and integrity of the Mozambican financial system and as one of the actions to remove the country from the Grey List', said Bernardo.

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