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» Population 24 million (est 2013) » GDP (PPP) $26.22 billion (2012 est) » GDP/capita (PPP) $1,200 » Labor force 10.1 million (2012 est) » Unemployment rate 17% (2007 est)
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Table C-3 Mozambique Peers and Twins Rank 2000 1997 % of U.S. 1960 % of U.S. 2000 % of U.S. Blue Line Avg per capita growth 2000- 2013 above below PopAbove Land Locked Civil war Zimbabwe216.3%9.2%2.5%3.56-2.4%-5.912.6Noyes Burundi21.9%4.3%1.2%3.641.8%-3.68.9 No yes Malawi93.3%3.1%1.6%3.593.0%-0.5917Noyesno Uganda157.2%5.2%2.2%3.573.5%-0.1137Noyes Chad232.8%7.9%2.5%3.563.8%0.2211.Yesyes Mozambique44.6%7.8%1.4%3.605.4%1.823yesnoyes Ethiopia52.1%2.2%1.4%3.605.9%2.391Yesyes Angola532.7%7.9%6.4%3.43.6%-3.421Yesnoyes Botswana98 19.5 % 5.0%25%2.92.6%-0.241.9yes no
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Source: IMF Country Report
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The Mozambican metical has become weaker over the years thus promoting trade Inflation has dropped over time from a peak of 63 % in 1994 and now currently at around 10% Source: World Development Indicators
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Adult literacy has increased by ( 44.94%) since 1997 Female literacy rate has had the most significant increase since 1997 increasing by(72.67%) Male literacy rate has had a modest increase of (29.14%) since 1997 Source: World Development Indicators
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The GINI of Mozambique since 1996 has increased over time with the GINI in 2004 at 45.66 People who live below the poverty line of $1.25/day have decreased by 38.94% since 1996 Those who live below the poverty line of $2/day have decrease by 26.97% since 1996
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Mozambique’s main contributor to GDP is the services sector(tourism, telecommunications and finance) Agriculture makes the second largest contributor (tobacco, sugar, cotton, timber, cashews) Industry is the smallest contributor (manufacturing, aluminum, coal, minerals, natural gas)
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The services industry shrunk after the financial crisis, and agriculture increased
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Value added by Industry has been increasing since 1992 it is currently around 24% Value added by Agriculture has been decreasing since 1989 (a good sign) it is now around 29% And value added by services and other sectors has been increasing since 1989 it is now around 47% Source: World Development Indicators
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Trade made up 74.52% of Mozambique’s GDP in 2011 Exports of goods and services made up 28.98% of GDP Source: World Development Indicators
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Source: IMF Country Report
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Mozambique is struggling with resolving insolvencies, enforcing contracts and making credit easily available
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Foreign direct investment has increased gradually since 1989 and started increasing at a very high rate since 2005 increasing by 775.80% from 1.86% to 16.29% Source: World Development Indicators
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Source: IMF Country Report
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» Recommendations: » Invest more on agriculture-with focus on bio fuels (ethanol and bio diesel) » Improve infrastructure to keep up with growing capacity » Strengthen service sector through improvement of regulation and institutions » Improve availability of education » Make credit easily accessible: Microfinance » Improve on their tax collection methods to increase tax revenue
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Bibliography » International Monetary Fund. (2013). Country Report Republic of Mozambique: fifth review under the policy support instrument and request for modification of assessment criteria. Retrieved April 20, 2013 from: http://www.imf.org/external/pubs/ft/scr/2013/cr1301.pdf http://www.imf.org/external/pubs/ft/scr/2013/cr1301.pdf » International Monetary Fund.(2013) Country Report Republic of Mozambique fourth review under the policy support instrument and request for modification of assessment criteria. Retrieved April, 2013 from: http://www.imf.org/external/pubs/ft/scr/2011/cr11149.pdf http://www.imf.org/external/pubs/ft/scr/2011/cr11149.pdf » World Bank. (2013). Doing Business. April, 2013, from http://www.doingbusiness.org/~/media/giawb/doing%20business/ documents/profiles/country/MOZ.pdf. http://www.doingbusiness.org/~/media/giawb/doing%20business/ documents/profiles/country/MOZ.pdf » World Bank. (2013) [Data file]. Retrieved from http://data.worldbank.org/ http://data.worldbank.org/
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» Pekka Virtanen & Dag Ehrenpreis, (2007). Growth, Poverty and Inequality in Mozambique“ Retrieved April 30, 2013, from: http://www.ipc-undp.org/pub/IPCCountryStudy10.pdfhttp://www.ipc-undp.org/pub/IPCCountryStudy10.pdf » Channing Arndt; M. Azhar Hussain; E. Samuel Jones; Virgulino Nhate; Finn Tarp & James Thurlow, (2011). ‘Explaining Poverty Evolution: The Case of Mozambique’ Retrieved April 30, 2013, from: http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011- 17.pdf http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011- 17.pdf » Finn Tarp; Channing Arndt; Henning Tarp Jensen; Sherman Robinson and Rasmus Heltberg, (2002) ‘Facing the Development Challenge in Mozambique An Economy wide Perspective’ Retrieved April 30, 2013 from: http://www.ifpri.org/sites/default/files/pubs/pubs/abstract/ 126/rr126.pdf http://www.ifpri.org/sites/default/files/pubs/pubs/abstract/ 126/rr126.pdf » J. O’s The Economist (2013) ‘Growth and Other Good things’ Retrieved May 2, 2013 From: http://www.economist.com/blogs/baobab/2013/05/develop ment-africa http://www.economist.com/blogs/baobab/2013/05/develop ment-africa
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