Mozambique has acted to keep consumer spending alive by raising the country's minimum wage by 14 percent. The move was reported in mid-June by the Agencia de Informacao de Mocambique (Maputo).
The increase is the same as last year's. This year the country's unions were asking for a 16.6 percent raise, and employers were prepared to pay only 10.5 percent.
The government's action takes into account the country's high rate of inflation. The International Monetary Fund (IMF) predicts that the rate of inflation will grow 7.8 percent by the end of 2005. The 14 percent raise, translates into a real gain of 6.2 percent.
Gains for agricultural workers are less. Agricultural workers get the same 14 percent raise, but they are starting from a lower...