IngentaConnect Mozambique: Economy, Politics and Government

Abstract:

While optimism among political commentators remains subdued, economic analysts are upbeat, despite extensive flood damage in many areas in 2000. Before the floods, Mozambique was one of the fastest growing economies in the world, with economic growth consistently in double digits and inflation at less than 5 per cent. The floods of February- March 2000 led to a slowdown in economic growth, rising inflation and a weakening balance of payments situation. However, reconstruction and the opening of the Mozal aluminium smelter helped reduce the impact of the floods on the wider economy. Meanwhile, the traditional enmity of the ruling Frente de Liberta??o de Mo?ambique (Frelimo) (Front for the Liberation of Mozambique) and its erstwhile adversary in the civil war, the Resistencia Nacional de Mo?ambique (Renamo) (Mozambique National Resistance), dominates the polity and constantly threatens to destabilise the country.

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