Mozambican economy records third quarter of decline

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

According to the INE report on National Accounts, Gross Domestic Product at market prices (GDPpm) registered “a negative variation of 0.94%” in the second quarter, “making an accumulated minus 2.40%” in the first six months of 2025.

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

Previously, 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, firstly, to the secondary sector”, which fell by 13.87%, “with greater emphasis” on the Electricity, Gas and Water Distribution sector, with a variation of minus 29.36%, followed by the Manufacturing Industry, with a variation of minus 9.44%, and by construction, which fell by 2.21%.

The tertiary sector occupies the second position, with a negative variation of 1.88%, immediately “induced by the Hotels and Restaurants sector”, which fell in the second quarter by 11.34%, followed by the Trade and Repair Services sector, with a decrease of 5.90%, and by Transport, Storage and Auxiliary Transport Activities and Information and Communications, with a decrease of 3.44%.

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

Mozambique experienced around 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 resulted in around 400 deaths , as well as the destruction and looting of public infrastructure and businesses.

On March 23, Daniel Chapo and Venâncio Mondlane , the presidential candidate who does not recognize the results of the October general elections, met for the first time and committed to ending the violence, meeting 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 more than 32.2 billion meticais (480 million euros) and 17 thousand unemployed, according to an estimate presented in February by the Confederation of Economic Associations of Mozambique (CTA).

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