Mozambique Economy Enters Recession in Q1

The Mozambican economy shrank by 3.9% in Q1 2025, after a revised 5.7% plunge in the previous period, pushing the country into technical recession.

The downturn occurred during a period of continued post-election social unrest and was primarily driven by a 16.2% drop in the secondary sector, notably in utilities (-22.5%), manufacturing (-14.8%), and construction (-10.8%).

The tertiary sector also saw a sharp decline of 8.3%, with hotels and restaurants down 21.6%.

Transport, storage, and communications fell 21.3%, and trade and repair services dropped 18.1%.

On the upside, the primary sector saw a positive 2.1% rise, supported primarily by gains of 6.5% in mining and 1.3% in fishing.