Mozambique GDP Contracts Sharply in Q4

Mozambique's GDP declined by 4.9% year-on-year in Q4 2024, following a 3.7% growth in the previous three-month period.

This marked the first economic downturn since Q4 2020 and the steepest since at least 2001.

The largest declines in economic activity occurred in the hotel and restaurant sector, which fell by 14.7%, followed by manufacturing (-11.14%), trade and repair services (-10.64%), and mining (-10.06%).

Alongside the devastating droughts and cyclones resulting from climate change, the post-election protests in late 2024 also disrupted economic and social activities across the country.

Following the October 9 general elections and the announcement of the results, the country experienced escalating social unrest, including protests, barricades, vandalism, looting, and violent clashes with police, which led to over 300 deaths.

In 2024, the GDP growth was approximately 1.9%, well below the government's 5.5% forecast.