First National Bank (FNB) Mozambique, a subsidiary of the South African group FirstRand, believes that the Mozambican economy was resilient during the first half of the year, with growth of around 4.6%, much in line with initial forecasts.

According to Alfredo Mondlane, head of Economics and Market Research at the FNB, who was speaking a few days ago during a debate on Sustainable Financing, despite the various constraints – including the climatic events that affected the country at the start of the year – the Mozambican economy continued to show growth strength, highlighting that Liquefied Natural Gas (LNG) will be the major driver of the extractive sector by the end of the year.

“This year, LNG will be the driving force behind at least 90% of the growth in the extractive sector, which is mostly due to Floating Liquefied Natural Gas (FLNG), which was not produced in October last year,” he explained, quoted in a statement released by the FNB.

As for the financial sector, Alfredo Mondlane reported growth of 7% in the period in question. However, following the increase in mandatory reserve rates from 10% to 39%, the sector is now facing a liquidity challenge. “And this has translated into an additional cost of financing the economy. As a result, the sector slowed its growth in the second quarter. However, even with this slowdown, the financial sector is expected to remain resilient and continue to grow,” he stressed.

With regard to inflation, the economist expects it to worsen somewhat, but without reaching double digits, i.e. “the expectation by the end of the year is that it will be below 7%”.

Gross Domestic Product (GDP) projections are a significant factor in determining the economic plans and policies of nations around the world.

These forecasts are important for African countries, as they provide insight into the overall development trajectory, growth potential and economic health of the continent.

As Africa continues to navigate its economic landscape, harnessing knowledge from Gross Domestic Product (GDP) projections is key to shaping a resilient and inclusive future.

The news portal Business Insider Africa, in an article published on Friday, November 10, notes that the International Monetary Fund, in its October World Economic Output (WEO) report, detailed the real GDP (annual percentage change) of each country.

According to the IMF’s baseline scenario, quoted by the website, inflation continues to fall as central banks continue to adopt a restrictive stance. The baseline scenario does not include a decline in real GDP per capita worldwide, which often occurs during a global recession.

Compared to the WEO’s April 2023 forecast, growth and employment in the first half of the year continued to be more robust. Although the world average projection has remained virtually unchanged from the July 2023 WEO update, there are several changes in growth and inflation expectations in the various countries.

African countries with the highest GDP projections for 2023

In this context, among the top ten African countries with the highest GDP projection for 2023, as the year draws to a close, are: in first place, Mozambique with 7% of GDP; in second place, the Democratic Republic of Congo with a projection of 6.7% of GDP; Ivory Coast comes third with a projection of 6.2% of GDP; in fourth place comes Rwanda with a projection of 6.2% of GDP; Ethiopia comes fifth with a projection of 6.1% of GDP; in sixth place comes Guinea with a projection of 5.9% of GDP; in seventh place is The Gambia with a projection of 5.6% of GDP; Benin comes in eighth place with a projection of 5.5% of GDP; Togo comes in ninth place with a projection of 5.4%; and lastly, Tanzania comes in tenth place with a projection of 5.2% of GDP.