tries. Socialist mismanagement and a brutal civil
war from 1977-92 exacerbated the situation. In 1988, the government
embarked on a series of dramatic macroeconomic reforms designed to
stabilize the economy and reduce government participation. These steps
combined with the political stability that has prevailed since the
1994 multi-party elections have led to dramatic improvements in the
country's growth rate fueled by foreign and domestic investments and
donor assistance. Inflation was brought to single digits during the
same period, although it has returned to double digits in 2000 and
2001. Foreign exchange rates have remained relatively stable. Fiscal
reforms, including the introduction of a value-added tax and reform of
the customs service, have improved the government's revenue collection
abilities. In spite of these gains, Mozambique remains dependent upon
foreign assistance for much of its annual budget, and the majority of
the population remains below the poverty line. Subsistence agriculture
continues to employ the vast majority of the country's workforce. A
substantial trade imbalance persists, although it has diminished
with the opening of the MOZAL aluminum smelter, the country's largest
foreign investment project. Additional investment projects in titanium
extraction/processing and garment manufacturing should further close the
import/export gap. Mozambique's once substantial foreign debt has been
reduced through forgiveness and rescheduling under the IMF's Heavily
Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is
now at a manageable level.

GDP: purchasing power parity - $17.5 billion (2001 est.)

GDP - real growth rate: 9.2% (2001 est.)

GDP - per capita: purchasing power parity - $900 (2001 est.)

GDP - composition by sector: agriculture: 33% industry: 25% services:
42% (2000 est.)

Population below poverty line: 70% (2001 est.)

Household income or consumption by percentage share: lowest 10%: 2.5%
highest 10%: 31.7% (1996-97)

Distribution of family income - Gini index: 39.6 (1996-97)

Inflation rate (consumer prices): 10% (2001 est.)

Labor force: 7.4 million (1997 est.)

Labor force - by occupation: agriculture 81%, industry 6%, services 13%
(1997 est.)

Unemployment rate: 21% (1997 est.)

Budget: revenues: $393.1 million expenditures: $1.025 billion, including
capital expenditures of $479.4 million (2001 est.)

Industries: food, beverages, chemicals