Mozambique GDP Growth Subdued in Q1

The economy of Mozambique expanded by just 0.1% year-on-year in Q1 2026, following an upwardly revised 5.1% growth in the previous three-month period. This marked the second consecutive quarter of growth, albeit weak, following the recession caused by the crisis that followed the general elections of October 2024. Economic activity was driven by the tertiary sector, which rose 3.5%, led by hotels and restaurants (+5.1%) and trade and repair services (+4.5%). Transport, communications and financial services also contributed, while the secondary sector grew 3.2%, supported by utilities, manufacturing and construction. In contrast, the primary sector declined by 4.8%, weighed down by mining, which plunged 21.6%, despite gains in agriculture (+2.2%) and fishing (+0.9%).

The economy of Mozambique grew by 4.7% in the fourth quarter of 2025, following a 0.9% contraction in the previous period. This marks the first period of economic expansion since the third quarter of 2024, indicating the country has emerged from a technical recession it experienced earlier. Growth was primarily driven by the secondary sector, which expanded by 4.87%, supported by a sharp 13.58% increase in manufacturing and a 4.01% rise in construction, although electricity, gas, and water supply contracted by 17.56%. The primary sector grew by 4.55%, led by mining and quarrying (+6.64%), while agriculture, livestock, forestry, and related activities rose 2.89%, and fishing increased 1.12%. Meanwhile, the tertiary sector advanced 4.09%, underpinned by strong growth in hotels and restaurants (+21.72%) and financial services (+7.29%), alongside gains in transport, storage, information and communications (+4.47%), and trade and repair services (+4.13%).

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.