Mozambique’s economy contracts for third straight quarter – INE

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Mozambique’s economy contracts for third straight quarter – INE

10:59 CAT | 10 Sep 2025

File photo: Lusa

The Mozambican economy shrank by 0.94% from April to June, compared to the same period in 2024 and for the third consecutive quarter, according to data from Mozambique’s National Statistics Institute (INE).

According to the INE’s National Accounts report, the Gross Domestic Product at market prices (GDPpm) registered a negative variation of 0.94% in the second quarter, totalling minus 2.40% in the first six months of 2025.

In the first quarter of 2025, GDPm fell by 3.92% and in the fourth quarter of 2024 by 5.68%, in both cases during a period of strong social unrest, with widespread protests across the country following the general elections on 9 October.

Earlier, in the third quarter of 2024, Mozambique’s GDP had grown by 5.58%.

The performance of economic activity in the second quarter of 2025 “is attributed, in the first place, to the secondary sector”, which fell by 13.87%, “most notably” the Electricity, Gas and Water Distribution sector, which fell by 29.36%, followed by Manufacturing, which fell by 9.44%, and Construction, which fell by 2.21%.

The tertiary sector is in second place, with a negative variation of 1.88%, “driven by the Hotels and Restaurants sector”, which fell 11.34% in the second quarter, followed by Trade and Repair Services, down 5.90%, and Transport, Storage and Support Activities for Transport and Information and Communications, down 3.44%.

Mozambique’s government forecasts GDP growth of 2.9% in 2025, revised downwards from the estimate of 5% released before the elections. In 2024, according to previous preliminary data from the government, the Mozambican economy grew by 1.85%, against the pre-election forecast of 5.5%.

Mozambique has experienced around five months of social tension, marked by demonstrations, strikes, and barricades in the streets of various cities, especially Maputo, initially in protest of the election results of 9 October, called by former presidential candidate Venâncio Mondlane.

The protests degenerated into violence with the police and caused around 400 deaths, as well as the destruction and looting of public infrastructure and businesses.

On 23 March, Daniel Chapo and Venâncio Mondlane, the presidential candidate who does not recognise the results of the October general elections, met for the first time and committed to ending the violence. They met again on 21 May with an agenda to pacify the country.

Almost a thousand Mozambican companies were affected by the post-election demonstrations, with an impact on the economy of more than 32.2 billion meticais (€480 million) and 17,000 unemployed, according to an estimate presented in February by the Confederation of Economic Associations of Mozambique (CTA).

According to the CTA’s survey, 955 companies were “directly affected” by the demonstrations and social unrest that followed the October general elections, 51% of which “suffered total vandalisation and/or looting of goods”.

Source: Lusa