The macroeconomic impact of COVID-19 in Mozambique: A social accounting matrix approach.
JOURNAL OF INTERNATIONAL DEVELOPMENT 2022;
34:823-860. [PMID:
35465461 PMCID:
PMC9015555 DOI:
10.1002/jid.3601]
[Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Figures] [Subscribe] [Scholar Register] [Received: 04/21/2021] [Revised: 10/08/2021] [Accepted: 11/17/2021] [Indexed: 06/14/2023]
Abstract
This study assesses the economic costs of COVID-19 and the state of emergency implemented by the Government of Mozambique. We use a social accounting matrix multiplier analysis to estimate the effects of the pandemic on the economy. Our simulations suggest that the Mozambican economy lost 3.6 percentage points of GDP growth in 2020 and that employment was 1.9 percentage points down. These losses were primarily driven by export shocks, the most heavily affected sectors being trade and accommodation and mining. Mozambique faces a critical challenge of how to promote economic diversification and reduce vulnerability to foreign shocks.
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