Mozambique: Strong GDP growth and natural resource base

Annual average GDP growth in the period 2000-08 was +7.6%, with Mozambique one of the African economies consistently expanding at a fast rate. Monetary policy was loosened through the course of

2012, with the central bank reducing its key policy interest rate eight times and by a cumulative 6.5pps.

The current account records large deficits (averaging -14.1% of GDP in 2000-08). External debt levels (debt/GDP of over 43% and debt/export earnings over 180% in 2013) require careful management.