The macroeconomic impact of COVID-19 in Mozambique
WIDER Working Papers 2021. (93):38 pp. many ref.
; 2021.
Article
in English
| CAB Abstracts | ID: covidwho-1965130
ABSTRACT
This study aims to assess the economic costs of COVID-19 and the state of emergency implemented by the Government of Mozambique, relying on a social accounting matrix. It produces numerical results that represent the direct effect on (or 'shocks' to) the economy associated with the pandemic. We distinguish four channels-supply, demand, investment, and export-by which the state of emergency and other efforts influence economic activity. Our simulation suggests that the Mozambican economy lost a total of 3.6 per cent growth in 2020 and that total employment was 1.9 per cent down compared to a scenario without COVID-19. The main part of this loss is foreign-instigated, resulting from a demand reduction for Mozambican products by the rest of the world. The most heavily affected economic sectors are trade and accommodation and mining. Furthermore, our simulation implies that the production factors of capital and urban labour are more affected than rural labour. Moreover, the multisector multiplier analysis brings out the high dependence of Mozambique on a small number of export items (including tourism). Accordingly, Mozambique should promote economic diversification and explore the potential of reducing Mozambique's vulnerability to foreign shocks.
Investment, Finance and Credit [EE800]; Supply, Demand and Prices [EE130]; Labour and Employment [EE900]; Tourism and Travel [UU700]; Leisure, Recreation and Tourism Economics [EE119]; International Trade [EE600]; economic impact; accommodation; accounting; capital; costs; diversification; economic sectors; employment; investment; labour; macroeconomics; tourism; trade; Mozambique
Full text:
Available
Collection:
Databases of international organizations
Database:
CAB Abstracts
Type of study:
Experimental Studies
Language:
English
Journal:
WIDER Working Papers 2021. (93):38 pp. many ref.
Year:
2021
Document Type:
Article
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