Mozambique’s trade deficit down 9.8% in Q1

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Mozambique’s trade deficit down 9.8% in Q1

2:47 CAT | 16 Sep 2025

File photo: Notícias

Mozambique’s trade balance deficit fell 9.8% year-on-year in the first quarter of the year, to US$546.2 million, according to data from the central bank.

“This result was essentially due to the 15.7% improvement in the current account deficit, to US$580.1 million),” states the Bank of Mozambique’s report on the balance of payments for the first quarter of 2025, which Lusa obtained today.

The central bank report adds that the reduction in the current account “is primarily due to the 91.8% reduction in the negative balance of the goods account, justified by the 4.8% increase in exports, compared to the 7.3% decrease in imports.”

The reduction in the current account deficit also resulted from the 18.9% reduction in the negative balance of the primary income account, to US$459.3 million, reflecting the 19.8% reduction in investment income, “due to the decrease in capital exports by Large Projects, both in the form of profits and dividends, and interest to direct investors”.

Meanwhile, the financial account recorded an inflow of resources of US$612 million in the first quarter, a year-on-year reduction of 27%, justified by the increase in the acquisition of liquid assets of almost US$1.102 billion, “in the form of Other Investment, using debt instruments”.

“In this context, Large Projects transactions stand out, registering an increase of US$355.8 million, in a context in which financial flows in the form of Foreign Direct Investment (FDI) increased to approximately US$1.626 billion,” the report further states.

With this performance, the report indicates, the Mozambican economy’s “net debt” position relative to the rest of the world increased by $604 million in the first quarter, compared to the end of December 2024, to $71.412 million at the end of June.

Source: Lusa