Mozambican economy hit rock bottom in 2018, to grow 3.7% in 2019

Aspeto do centro de Maputo

The Standard Bank economic studies office on Friday said that Mozambique's economy hit rock bottom last year, as it only saw a 3.5% growth, but should recover to 3.7% this year and 3.9% in 2020.

"We estimate that the economy hit rock bottom last year, with a growth of 3.5%, because of low domestic demand due to a lack of disposable income in households," the note said, estimating a public debt ratio compared to the GDP of 106.5% at the end of last year.

In the January analysis of the progress of the sub-Saharan African economies, which Lusa had access to, Standard Bank anticipated that the two Final Investment Decisions for liquified natural gas projects in the Rovuma basin will result in growth increase to 3.7% this year and 3.9% in 2020.

The Anadarko project in Area 1 should receive a "green light" this quarter, and a project led by Exxon-Mobil/ENI should be approved by the end of the second half of the year, the bank said.

The approval of these projects and their kick-off should make the natural resources economy continue to be the main driving force of the economy and exports.