The Mozambican Government predicts the country’s economy would grow 4.5 percent this year, said last week Adriano Maleiane, the Minister of Economy and Finance for the African nation.

The latest official economic estimate was revised downward from an initial forecast of a 7-percent annual growth, Chinese state-run news agency Xinhua reported.

Mr Maleiane was quoted as saying the authorities had lowered the forecast due to adverse changes in the domestic market and overseas ones. They included the fall in commodity prices, the reduction of foreign direct investment in Mozambique and droughts and floods.

The Government would cut capital expenditure, but it would not affect key social programmes such as education, health and social affairs, he said. Nonetheless, further policy measures would be required if the economy were to grow by 5.2 percent next year, he added.

Online news portal Macauhub also reported this week that the Economist Intelligence Unit (EIU) – a think tank of the British media firm The Economist Group – suggested Mozambique’s economy would grow 3.8 percent this year. It would be the lowest expansion rate for that country in 15 years, the report added.