Mozambican Economy Stuck in Recession

Mozambique’s GDP fell 0.9% year-on-year in Q3 2025, the same rate as the previous three-month period, extending the economy’s contraction into a fourth consecutive quarter. The secondary and tertiary sectors were the most affected, reflecting the lingering effects of post-election tensions. On the demand side, reduced private consumption and lower investment weighed on overall economic activity.

The economy of Mozambique contracted by 0.9% year-on-year in Q2 2025, following a 3.9% slump in the previous three-month period, keeping the country in recession. The secondary sector led the decline (-13.9%), driven by sharp falls in utilities (-29.4%), manufacturing (-9.4%), and construction (-2.2%). The tertiary sector also contributed negatively, shrinking 1.9%, largely due to hotels and restaurants (-11.3%); trade and repair services (-5.9%); transport, storage, and supporting activities and information and communication (-3.4%). The primary sector, by contrast, recorded positive growth of 2.9%, driven primarily by the mining industry, which rose 6.8%, and fisheries, up 3.9%. Agriculture, livestock, hunting, forestry, and related activities expanded by 1.1%.

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.