Mozambique: Economy shrank almost 4%% in the first quarter, 6% in Q4 of last year – INE

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Mozambique: Economy shrank almost 4%% in the first quarter, 6% in Q4 of last year – INE

12:15 CAT | 11 Jun 2025

FILE - For illustration purposes only. [File photo: Lusa]

The Mozambican economy shrank by 3.92% in the first quarter of this year, year-on-year, after declining by 5.73% in the last three months of 2024, the National Statistics Institute (INE) of Mozambique announced yesterday.

In the quarterly national accounts report for the first three months of 2025 – a period still marked by strong post-election social unrest in the country – the INE explains this performance, “firstly”, with the secondary sector, which fell by 16.18%, “with greater emphasis” on electricity, gas and water supply, which fell by 22.47%. This was followed by the manufacturing industry, which fell by 14.77%, and construction, with a fall of 10.77%.

The tertiary sector fell by 8.31% in the first three months of the year, compared to the same period in 2024, “driven by the hotel and restaurant sector”, with a decrease of 21.57%, followed by transport, storage and auxiliary transport activities and information and communications, with a decrease of 21.33%, while trade and repair services saw a decrease of 18.08%.

Mining and Fisheries grow

On the other hand, the primary sector recorded a positive variation of 2.09%, influenced by the mining industry, which grew by 6.53%, followed by fisheries with 1.32%.

Aggregate demand fell by 0.22% in the first quarter of 2025, when compared to the same period in 2024, influenced by the “reduction in private consumption, the component with the greatest weight in domestic demand” and in the Gross Domestic Product (GDP), which fell by 7.51% in this period.

Exports “performed poorly”, falling by 2.26% from January to March, year-on-year, while imports grew by 6.11%.

Mozambican GDP grew by 3.56% in the first quarter of 2024, followed by further increases of 4.28% and 5.53% in the second and third quarters, respectively.

In the wake of the unrest that followed the general elections of October 9, GDP fell by 5.73% in the last quarter and 3.92% in the first quarter of 2025, according to the INE.

The Mozambican government expects GDP growth of 2.9% in 2025, revised downwards from the pre-election estimate of 5%. In 2024, according to preliminary data from the government, the Mozambican economy grew by 1.85%, compared to the pre-election forecast of 5.5%.

Mozambique experienced almost five months of social tension, with demonstrations, strikes and barricades on the streets of several cities, especially Maputo, initially in protest against the election results of October 9, 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 March 23, Daniel Chapo and Venâncio Mondlane, a presidential candidate who does not recognize the results of the October general elections, met for the first time and committed to ending the violence, having met again on May 21 with an agenda to pacify the country.

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

According to the survey carried out by the CTA, 955 companies were “directly” affected by the protests and social unrest that followed the general elections in October, with 51% “suffering total vandalism and/or looting of their goods”.

Source: Lusa