Table 2. Real and per capita GDP for Mozambique (Structural Weights, and Growth) and Inflation Rate (2007-2011) Sector of Activity 2007 2008 2009 2010 2011 Agriculture, Animal production, hunting and forestry Fishing, aquaculture, and related services Extractive Industries Manufacturing Electricity and Water Construction Trade Repair of Automobile Vehicles, motorbikes and domestic goods Accommodation, restaurants and similar Transport, storage and communication Financial activities Real Estate activities, rentals and services provides to companies Public administration, defence and mandatory social security Education Health and Social Action Other collective, social and personal service activities Total value added, base prices. Taxes on Products Gross Domestic Product 23,1 23,6 23,8 23,6 23,5 1,7 1,1 13,5 5,6 3,3 11,2 0,3 1,7 1,1 13,2 4,6 3,5 11,2 0,3 1,4 1,1 12,7 4,9 3,4 11,2 0,3 1,4 1,2 12,4 4,8 3,4 10,8 0,4 1,4 1,3 11,9 4,8 3,3 10,7 0,4 1,6 9,9 5,2 7,6 1,7 10,4 5,0 7,2 1,6 10,8 5,2 6,9 1,6 11,6 5,4 6,5 1,6 12,0 5,4 6,2 3,6 3,6 3,6 3,7 3,7 3,7 1,3 1,7 3,7 1,4 1,7 3,9 1,4 1,6 4,0 1,4 1,5 4,0 1,4 1,5 91,3 8,7 100,0 90,8 9,2 100,0 90,7 9,3 100,0 90,6 9,4 100,0 89,9 10,10 100,0 151.300 161.635 171.873 184.050 197.524 7,3% 340 9,17 6,8% 380 15,4 6,3% 430 3,79 7,1% 440 12,43 7,3% 470 11,17 Gross Domestic Product, constant prices 2003=100 (10^6 MT) Growth Rate GDP per capita (USD) Inflation (%) Source: National Institute for Statistics (www.ine.gov.mz), World Bank (2012) (data.worldbank.org/indicator/NY.GNP.PCAP.CD) Average annual inflation, measured as the variation of the consumer price index in the country, collected by INE, in the cities of Beira, Nampula, Maputo, was around 10.37% on average between 2007 and 2011 (Table 2). The highest rate was observed in 2008 (15,4%), representing 6,23 percentage points above the 2007 rate (9,17%). Among the main factors that contributed to the steep increase of the prices in 2008 we can highlight: i. ii. iii. Scarcity of fruit, vegetables and foodstuffs in general (following atypical rain that characterized the beginning of the year); Depreciation of the Metical relative to the currencies of major trade partners; and Increase of international food and fuel prices Until November of 2012, annual inflation was 2,33% (Table 2). Determining factors of this reduction in the inflation rate were the strong dynamism in the real economy and consequent increase in internal supply of fruit and vegetables, good coordination of monetary and fiscal policies, relative stability of the Metical in relation to currencies traded in our market, in a context in which there continued to operate the cushioning of the prices of some goods and services, brought in to mitigate the impact of the financial crisis, with emphasis on the prices of 43

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