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Assessing the Impact of Covid-19 in Mozambique in 2020

Taking advantage of the 2019/20 Mozambican household budget survey, which was ongoing both before and during the first phases of the Covid-19 pandemic, we assess the impact of Covid-19 on welfare in 2020.

We seperate the impact of the pandemic from the effect of other shocks. We find that consumption levels are significantly lower and poverty rates substantially higher during the first phases of Covid-19, than in the pre-Covid-19 period.

Non-food expenditures seem to have suffered relatively more than food expenditures, while the impact on consumption levels was greater for people working in the secondary and tertiary sectors than for workers in the primary sector, mainly agriculture. The main results include that the probability of experiencing poverty after March 2020 if the individual was not living in poverty in the preceding period was more than double the probability of becoming nonpoor after March 2020 if the individual was non-poor in the preceding period.

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