Inflation rates in 2007 decelerated to 8% and the growth rate of GDP was reported to be 7.5%. The export earnings, on the high, too have contributed to the economic success of the country, recently.
The economic growth in Mozambique was observed sometime in the later 80's , when a number of steps taken to improve the flagging economic status bore fruit. The macroeconomic reforms coupled with stability on the political front showed a definite growth spurt on the economic curve of the country.
The assessment of the economic report of Mozambique for 2008, shows the economy to be 56.6% free, which is 0.7% higher than last year. Tax revenue is low, as calculated in GDP percentage. Inflation is however rampant in Mozambique.
Mozambique economy and agriculture
Sugar, cashew nuts, tobacco and tea are the main cash crops cultivated in Mozambique. The expected rise in the production of sugar in turn would increase the export from the country, which would contribute to the overall economy. The cultivation of fish also contributes to the economy, in fact prawns is one of the largest export from
Macroeconomic trends in Mozambique
The measures taken to overhaul the economy of the nation is evident in the GDP rates per capita. The per capita GDP in the 1980's was $120 and in 2000 it was approximately $222. The rebate of the foreign debt under the Heavily Indebted Poor Country Initiative (HIPC) and later the Enhanced HIPC program helped the lagging economic status of the country.
Vital Statistics of the economy of Mozambique
GDP (purchasing power parity) $17.64 billion (2007 est.) GDP (official exchange rate) $7.559 billion (2007 est.) GDP - real growth rate 7.3% (2007 est.) GDP - per capita (PPP) $800 (2007 est.) GDP - composition by sector: agriculture: 23%
industry: 30.1% ----(2007 est.)