Economic activity in Mozambique in 2013 was robust, despite the uncertain security situation and unfavorable weather conditions. Major flooding in the first quarter curtailed real GDP growth to 7%, 0.2% below that of 2012, and short of the initial 8.5% forecast. The government’s macroeconomic management has been prudent, and the country agreed a new three-year Policy Support Instrument (PSI) program with the International Monetary Fund (IMF). The buoyant economy remains driven by mega-projects, predominantly funded by foreign capital, focused on aluminium, extractive industries, and the energy sector. The extractive sector was the fastest growing in 2013 at 22%, propelled by coal exports. Another continued growth driver has been increased public expenditure – scheduled to reach 36.8% of GDP in 2014 – primarily benefiting the construction, services, and transport and communications sectors. The steady gains in GDP per capita – up 44.7% since 2010, and now estimated at USD 640 (United States dollars) – is fuelling domestic demand, although this is centered exclusively on urban areas, where about 20% of the population lives. The financial sector follows behind the extractive industry as the most dynamic. It expanded by 17.7% in 2013, supported by increased household income and credit expansion. The agriculture sector, which employs 70% of the population, remains relatively sluggish presenting 4.6% growth in 2013.