Losses From Natural Disasters Estimated AT 1, 3 Per Cent Of GDP

Maputo, 23 May (AIM) – The Deputy Minister of Economy and Finances, Carla Louveira, has revealed that the natural disasters that have affected Mozambique, over the last two decades, caused losses corresponding to 1.3 percent of the country’s Gross Domestic Product (GDP).

According to Louveira, cited in Tuesday’s issue of the Maputo daily “Notícias”, the natural disasters which caused most damage to the economy were cyclones, floods, and severe droughts, as well as the most recent health crisis caused by the Covid-19 pandemic.

The terrorism that has been plaguing the northern province of Cabo Delgado since 2017, according to the Deputy Minister, has also been jeopardising the economy.

“In 2020 alone, Covid-19 caused losses of 3.6 per cent to the economy, and reduced the rate of employment by 1.9 per cent. The insurgency in Cabo Delgado has delayed the Liquefied Natural Gas projects and also undermined the commerce sector, housing and mining”, she said during the Economic and Financing Forum.

Despite the negative scenario, the government envisages an expansion of public investment, influenced by the ease of restrictions on access to external financing taking into account the new programme of the International Monetary Fund (IMF).

“Since 2022, there has been a visible positive evolution since the country has been recording a GDP growth rate of 4,1 percent, which is above the average of the Southern Africa Development Community.”, she said.

Louveira added, optimistically, that the prospects for growth in the near future are about 6.4 per cent annually.
(AIM)
Ad/pf (260)

(AIM / AIMENG)