Mozambique economy on track: Bank

Despite increasing fuel and cereal prices on the international market, Mozambique’s economy grew as expected, the country’s central bank said yesterday.

“As regards the economic performance, available information shows that in 2007 the economy grew 7,3 per cent, in line with initial forecasts,” according to Banco de Mocambique’s annual report, released yesterday. This was despite shocks in the form of rising prices of crude oil and cereals in the international market, which required periodic increases in domestic prices, wrote bank governor Ernesto Gove in the report.Gove said the bank’s plans to reduce inflation to a single digit were affected by the increase in prices of fuel and cereals on the international market.It managed to slow down the average annual inflation to 8,16 per cent, from 13 in 2006.The economic instability in Zimbabwe created “adverse side effects” for Mozambique.Nampa-SapaThis was despite shocks in the form of rising prices of crude oil and cereals in the international market, which required periodic increases in domestic prices, wrote bank governor Ernesto Gove in the report.Gove said the bank’s plans to reduce inflation to a single digit were affected by the increase in prices of fuel and cereals on the international market.It managed to slow down the average annual inflation to 8,16 per cent, from 13 in 2006.The economic instability in Zimbabwe created “adverse side effects” for Mozambique.Nampa-Sapa