The Mozambican economy grew by 0.1% in the first quarter of 2026, marking the second consecutive quarter of expansion following a full year of economic contraction, the National Institute of Statistics (INE) announced today in its quarterly accounts.
According to the official report, this slight increase in the Gross Domestic Product at market prices (PIBpm) follows a severe contraction of 2.9% in the first quarter of 2025.
The modest growth was driven heavily by the tertiary sector, which expanded by 3.5%, primarily propelled by the Hotels and Restaurants branch with a 5.1% variance.
The Trade and Repair Services sector followed closely behind with a registered increase of 4.5% during the first three months of the year.
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The Transport, Storage, Auxiliary Transport Activities, and Information and Communications branch recorded a 3.9% increase, while the Financial Services sector saw a 3.1% rise.
The secondary sector also posted positive performance with a 3.2% expansion, whereas the primary sector experienced a downturn, shrinking by 4.8% due to economic headwinds.
This steep decline in the primary sector was largely driven by the Mining and Extraction Industry, which suffered a significant contraction of minus 21.6%.
The Mozambican Government had previously estimated that the economy would expand by 0.52% through March, reflecting a gradual recovery from the post-election crisis of late 2024.
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In its first-quarter budget execution documents, the government noted that the national economy showed signs of gradual recovery despite persistent financial restrictions and a global trade slowdown.
The report recalled that following a 1.89% contraction observed in the third quarter of 2025, the economy improved, ending the fiscal year with an overall GDP decline of 0.52%.
“Despite this scenario, and according to the IMF, the national economy showed predictive signs of recovery with a GDP growth projection of 0.52% for the first quarter of 2026,” the document stated.
The performance reflects a macroeconomic duality with moderating inflation and a stronger external position, contrasted against domestic supply shocks, climate events, and structural limitations.
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The government emphasized that domestic economic activity was severely impacted by extreme weather events that compromised agricultural yields, degraded vital infrastructure, and raised transportation costs.
This context demonstrates that the economic recovery remains fragile and highly dependent on both external market developments and the efficacy of internal stabilization policies.
The economy initially rebounded in the final quarter of 2025, snapping four consecutive quarters of decline by growing 4.67%, which helped mitigate the year-end contraction to 0.52%.
This shift reversed a year-long downturn triggered by the political instability and widespread protests that followed the general elections held on October 9, 2024.
