Mozambique Economic data

Mozambique: Gross domestic product (GDP) per capita in current prices from 1988 to 2028 

Here we're discussing an economic indicator today called the Gross Domestic Product per capita, or GDP per capita. It's a way to measure how well a country's economy is doing, by looking at how much value in goods and services each person theoretically produces.

In Mozambique, projections from 2023 to 2028 show an expected increase in GDP per capita. If things go as predicted, this number should rise by about $272.1, which is over a 40 percent increase, reaching around $919.25 by 2028. Each year up to 2028 is expected to see an increase, marking that year as having the highest GDP per capita recorded in this period.

So, how do we calculate GDP per capita? Economists take the total value of all the goods and services produced in Mozambique, convert that value into U.S. dollars using the current exchange rates, and then divide it by the total number of people living in the country.

Why convert to U.S. dollars? It's to allow comparisons between different countries, as the dollar is a widely accepted and used currency globally.

Now, what does a rising GDP per capita mean? Generally, it might indicate that the economy is growing, people could be becoming better off, and the country is producing more. It's a sign that, on average, each person is contributing more to the economy.

But remember, GDP per capita is an average—it doesn't mean everyone's income is actually going up by that amount. There can still be a lot of inequality. It's also just one indicator. To get a full picture of economic health, we'd look at other data too.

Total labor force in Mozambique from 2013 to 2023 

The labor force is an important concept in understanding an economy, and it includes all the people who can work and either have a job or are looking for one.

In 2023, the labor force in Mozambique grew by about half a million people, or 3.4 percent compared to the previous year, reaching the highest number ever seen at 15.19 million people. This is part of a consistent trend where the number of people who can work and are either working or actively seeking work has been going up.

Why does this matter? Well, the labor force is a big part of what drives an economy. More people working or seeking work can mean more productivity and potentially more growth for a country's economy. It can affect everything from the country's GDP to the standard of living.

Keep in mind; it's not just about the number of people working. The quality of jobs and the match between skills and job requirements are also crucial. Plus, a growing labor force can strain resources if there aren't enough jobs for all those people.

It's worth noting that not everyone who isn't working is counted as outside the labor force. For example, students, homemakers, and retirees aren't included if they're not looking for work.

Mozambique: Youth unemployment rate from 2004 to 2023 

Let's explore the youth unemployment rate—a figure that gives us insight into the economic challenges young people face in the labor market. Today, we're looking at Mozambique's youth unemployment rate as of 2023.

The youth unemployment rate is the percentage of the labor force aged 15 to 24 who do not have a job but are actively seeking employment. This demographic is particularly important because these young people are typically just entering the labor market, either after finishing school or during their early working years.

In Mozambique, the rate of youth unemployment went down to 7.74 percent in 2023. While this is a decrease, it's crucial to note that the rate had been significantly higher in the two previous years than in the years before that. This means there was a recent spike in unemployment among young people, followed by a decline this year.

Why focus on youth unemployment? Well, high rates of joblessness in this age group can lead to a loss of valuable work experience and skills, which can have long-term effects on a person's career and earnings. It can also lead to social and economic problems, like increased poverty or inequality.

A reduced youth unemployment rate can be a positive sign. It might indicate that more young people are finding work, which can be good for the economy and society. This improvement could be due to a variety of factors, like changes in economic conditions, government youth employment programs, or educational reforms that better prepare students for the job market.

Mozambique: Main export partners in 2019 

We'll be looking at Mozambique's export partners in 2019. Exports are goods or services that a country sells to another country.

In 2019, Mozambique's number one export partner was South Africa, which received 16 percent of Mozambique's exports. This means that out of all the products and services Mozambique sold to other countries, the largest chunk, or fraction, went to South Africa.

Why does this matter? Trade partnerships are crucial for a country's economy. They can create jobs, bring in income, and lead to stronger connections between countries. Having a variety of trading partners can help a country like Mozambique have a stable economy because it's not relying on just one other country for its exports.

South Africa being the main export partner isn't too surprising, considering its geographic proximity and the strong economic ties in the region.

Countries often export what they have an abundance of or what they can produce well. This can be natural resources, agricultural products, manufactured goods, or services.

Reflecting on this, if you're a country and you're reliant on just a few export partners, changes in those countries could really impact your economy. So, it's often a good idea to have a diverse range of places to sell to.

Mozambique: Budget balance between 2018 to 2028 in relation to GDP 

This graph is on government finance, specifically the budget balance as a percentage of the Gross Domestic Product (GDP) - and we will be using Mozambique as our case study.

A budget balance refers to the difference between what a country's government earns (its revenues) and what it spends (its expenditures). When we talk about the budget balance in relation to the GDP, we're looking at the size of this difference compared to the entire economic output of a country.

For Mozambique, the forecast between 2023 and 2028 suggests an improving fiscal scenario, with the budget balance increasing by a total of five percentage points over this period. By 2028, the prediction is that the budget balance will hit a peak of 2.14 percent of the GDP. Put simply, this could mean that the government might have more revenues than expenditures by that percentage of the economy, which is generally seen as a positive sign.

Why is this important? A government with a positive budget balance (a surplus) can invest in infrastructure, services, and potentially reduce debt. On the other hand, a negative balance (a deficit) could mean the government needs to borrow money, which could lead to higher national debt.

Now let's think about household budgets as a simple analogy. If you spend less money than you make, you have a surplus that you could save for the future or spend on something you need. If you spend more, you might need to borrow money and pay it back later.

For a country, consistently increasing its budget surplus relative to its GDP could be a sign that the government is managing its finances well. However, the right balance can be complex because spending cuts or tax increases (common ways to improve a budget balance) can impact people's lives and the economy.

Mozambique: National debt from 2018 to 2028 in relation to gross domestic product 

We're tackling an economic concept known as the "debt-to-GDP ratio," and we'll be using Mozambique's forecast from 2023 to 2028 to understand it.

The debt-to-GDP ratio compares a country's total national debt to its Gross Domestic Product (GDP). This ratio is a key indicator of a country's financial health, showing how likely the country can pay back its debts.

Mozambique's ratio of national debt to GDP was expected to decrease significantly—by about 28.6 percentage points over the five years leading up to 2028. This would bring their ratio down to 61.09 percent, which would be the lowest point over those years.

Why is this important? A lower debt-to-GDP ratio can signal that a country is producing enough to manage and eventually pay down its debts without accruing more. It can mean the country is less of a risk for investors and can often lead to lower interest rates on borrowed money.

The decrease suggests that Mozambique is perhaps generating more economic output or is successfully managing and reducing its debt. It can also point to a healthy economy that is growing at a faster pace than debt accumulation.

Now let's consider it like this: imagine you have a debt that's a large portion of your income. If your income increases faster than your debt, it becomes easier over time to manage and repay that debt.

For a country, effectively managing the debt-to-GDP ratio typically involves balancing government spending, stimulating economic growth, and sometimes negotiating the terms of existing debt.

Mozambique: National debt from 2018 to 2028 

let's take a look at Mozambique's national debt and how it's projected to change over time. National debt is an essential concept in economics and public finance, representing the total amount of money that a government owes to creditors.

For Mozambique, the national debt was expected to grow by a total of $7 billion USD, or 34.91 percent, across a timeframe from 2023 to 2028. The total debt by the end of this period was forecast to be $27 billion USD. It's important to note the forecast indicates that this debt increase isn't linear, with the year 2028 not seeing a continual rise in the overall trend.

What is the national debt made of? It includes all types of liabilities, which are typically a mix of short-term and long-term obligations that could include bonds, loans, and other financial instruments. These can be owed to both domestic and foreign creditors.

Why does this matter? The amount of debt a country holds is significant for a few reasons:

1. Interest Payments: National debt incurs interest, which can take away from government budgets and limit spending on other services and investments.

1. Economic Health: High levels of debt can raise concerns among investors and affect a country's credit rating, making borrowing more expensive.

1. Public Services: Servicing debt means regular payments that might otherwise be spent on public services, infrastructure, or development projects.

1. Future Obligations: Accumulated debt is a burden on future generations who will have to manage and repay it.

Mozambique: Ratio of government expenditure to gross domestic product (GDP) from 2018 to 2028 

 let's consider the relationship between a government's spending and its economy's size, using the example of Mozambique and examining how its government spending relates to its GDP from 2023 to 2028.

The ratio of government expenditure to gross domestic product (GDP) gives us an idea of how much the government is spending in comparison to the total economic output of the country. When this ratio decreases, it implies that the government is either spending less, the GDP is growing faster than government expenditure, or a combination of both.

In Mozambique's case, the projected decrease over these years is significant—by 6.4 percentage points—dropping to an estimated 23.81 percent by 2028. This trend could suggest a tightening of government budgets or efforts to manage government spending more efficiently.

Why do we calculate government expenditure as a percentage of GDP? It helps us understand the scope and scale of government intervention in the economy. A high ratio can indicate more government services, programs, and infrastructure investment, which can either stimulate economic growth or, if not managed correctly, can lead to unsustainable debt levels.

On the other hand, a lower ratio might mean that the private sector has more room to operate, or it could suggest that the government is cutting back on services, which can impact everything from education and healthcare to infrastructure and defense.

If we liken it to a household budget, it's like comparing your family's total spending to its total income. If you spend a smaller percentage of your income, you might be saving more, investing, or just being frugal. For a government, finding the right balance is key.

Mozambique: Gross domestic product (GDP) per capita in current prices from 1988 to 2028 

 The Gross Domestic Product (GDP) per capita. This measure provides insight into the average economic output per person and, by extension, a glimpse into a country's standard of living.

Let's look at Mozambique as an example. The country's GDP per capita was expected to rise continually over the six years from 2023 to 2028, by a total of $272.1, which is an increase of 42.05 percent. By 2028, it's forecasted to reach $919.25, making it the highest it has been in that period.

What does the GDP per capita tell us? Well, it represents the average value of goods and services produced per person, if you divided the total GDP by the number of people in the country. It's often used as one of many indicators to gauge the economic performance of a country and the average wealth of its citizens.

Remember, though, this is an average. It doesn't mean that everyone's income is actually that amount. There can still be significant inequality in wealth distribution, with some people earning much more and others much less.

It's also quoted "at current prices," meaning it's not adjusted for inflation and reflects the value of money at the time.

So, when a country's GDP per capita increases, it's generally a good sign—it can mean the economy is growing, and people might be getting richer on average. But it could also just mean the population is shrinking while the economy stays the same size, or any combination of economic growth and population change.

Mozambique: Growth rate of the real gross domestic product (GDP) from 2018 to 2028 

Here we are examining an important economic metric – the growth of real Gross Domestic Product or GDP. We'll be using Mozambique's forecast from 2023 to 2028 as our example.

The "real" in "real GDP" indicates that we're considering the economic growth in terms of actual goods and services produced, without the distortions of inflation. It's expressed in constant prices, meaning it's adjusted for changes in the price level over time.

According to the projections, Mozambique's economy was expected to grow by an aggregate of 5.1 percentage points between 2023 and 2028. However, it's key to note that this growth isn't even; there are years like 2026 and 2028 where growth was not expected.

An increase of 5.1 percentage points spread across six years does not indicate uniform growth each year – some years can have high growth, others can have low or negative growth. By 2028, Mozambique's real GDP growth was estimated to reach 12.08 percent, which suggests a strong economic performance that year.

Why does this matter? Well, real GDP growth is often equated with the health of an economy. High growth rates can lead to increased employment and higher living standards, whereas negative growth can signal an economic downturn.

The fluctuation in growth rates could be due to various factors, such as changes in global commodity prices, political stability, foreign investment, weather patterns that affect agriculture, and many others.

Food inflation rate in Mozambique from January 2020 to December 2021 

Let's explore the concept of inflation, with a focus on food inflation in Mozambique among our examples today. Inflation, as you may know, is the rate at which the general price level of goods and services in an economy rises over time, reducing purchasing power.

Food inflation specifically refers to the rate at which food prices increase over a given period – in this case, on a year-on-year basis, which compares prices from one month to the same month in the previous year.

In Mozambique, the food inflation rate observed in December 2021 was 9.8 percent, which was a slight decrease from 10.4 percent in the previous month. Despite this month-to-month decrease, the overall trend had been an increase from 7.65 percent in January 2020.

An increase in food inflation can have significant effects on households, particularly for those with lower incomes, as a larger portion of their expenditure is typically allocated to food. This can lead to a situation where households have to either reduce their consumption, find cheaper alternatives, or spend a higher percentage of their income on food, potentially cutting back on other essentials.

Typically, various factors can cause food prices to rise, such as:

• Supply Chain Disruptions: Delays or problems in the transportation of food can lead to shortages and higher prices.

• Weather Conditions: Droughts, floods, or other extreme weather events can reduce crop yields, leading to supply shortages and higher prices.

• Global Market Fluctuations: Changes in the prices of commodities like oil can affect food prices, as transportation costs are a significant factor in food pricing.

• Economic Policies: Import tariffs, subsidies, or changes in taxation can also affect food prices.

Consumer price index (CPI) in Mozambique from January 2020 to July 2021 

The Consumer Price Index, or CPI. Through the example of Mozambique's CPI data from 2021, we'll get a sense of how this indicator works and what it can tell us about an economy.

The Consumer Price Index measures the average change over time in the prices paid by consumers for a basket of goods and services. This basket includes a range of items, such as food, transportation, and medical care. CPI is often used to assess changes in the cost of living and is a common measure of inflation.

In Mozambique, the CPI experienced a slight decrease in July 2021, dropping to 132.64 points from 132.96 points in the previous month. This indicates that, on average, prices of the basket of goods and services tracked in the index slightly reduced. A declining CPI between months suggests a short-term deflationary trend in consumer prices.

The figure of 132.64 doesn't represent prices in actual currency but rather an index number that's relative to a base year. For instance, if the base year CPI is set at 100, a CPI of 132.64 means that there's been an average price increase of 32.64 percent since the base year.

A decline in the CPI from one month to another, as occurred between June and July 2021 in Mozambique, would usually be interpreted as overall prices decreasing slightly during that period. However, remember that short-term fluctuations in CPI might not be indicative of a long-term trend.

Generation of electricity in Mozambique from 1990 to 2016, by fuel type 

In this graph, we're focusing on the energy sector, specifically how electricity is generated. We're looking at Mozambique, where there's been an increase in the use of hydropower and natural gas for electricity generation.

Hydropower, derived from the energy of falling water or fast running water, is a renewable, cleaner source of energy compared to fossil fuels. In Mozambique, the production of electricity using hydropower reached 15.61 terawatt-hours in 2016. A terawatt-hour (TWh) is a unit of energy equal to outputting one trillion watts for one hour. To give you a sense of scale, one terawatt-hour could power about 114 million LED light bulbs for a year!

Mozambique's increase in hydropower is significant for several reasons. Firstly, it has a low operating cost after the initial infrastructure is built. Moreover, it's a clean source of energy, as it doesn't emit greenhouse gases during operation, which is good for the environment.

Along with hydropower, Mozambique has also seen an increase in electricity generation from natural gas. While natural gas is a fossil fuel, it burns cleaner than coal and oil. It releases less carbon dioxide and fewer pollutants, which makes it a preferable choice in transitioning away from dirtier energy sources.

The rise in these two forms of electricity generation indicates a shift in Mozambique's approach to energy. It suggests a move toward making better use of the country's natural resources while potentially reducing reliance on imported fossil fuels and cutting greenhouse gas emissions.