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The macroeconomic impact of COVID‐19 in Mozambique: A social accounting matrix approach
Author(s) -
Betho Rosario,
Chelengo Marcia,
Jones Sam,
Keller Michael,
Mussagy Ibraimo Hassane,
Seventer Dirk,
Tarp Finn
Publication year - 2022
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3601
Subject(s) - social accounting matrix , economics , accommodation , diversification (marketing strategy) , covid-19 , vulnerability (computing) , pandemic , government (linguistics) , development economics , macroeconomics , business , computable general equilibrium , medicine , linguistics , philosophy , computer security , disease , marketing , neuroscience , computer science , infectious disease (medical specialty) , biology , pathology
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.