The Mozambican economy grew 1.7% in the second quarter of 2026 compared with the same quarter of 2025, the National Statistics Institute (INE) announced, marking the third consecutive quarter of expansion following the recession associated with the post-election crisis and exceeding forecasts.
According to quarterly national accounts released by INE, gross domestic product at market prices (GDPmp) accelerated from year-on-year growth of 0.1% in the first quarter to 1.7% between April and June. The result follows growth of 5.1% recorded in the fourth quarter of 2025, consolidating an economic recovery that began at the end of last year.
Economic activity in the second quarter of 2026 was driven primarily by the tertiary sector, which recorded positive growth of 2.5%, INE said.
According to the institute, services were driven mainly by Hotels and Restaurants, which grew 14.5%, followed by Financial Services, with positive growth of 4.2%. Trade and Repair Services grew 1.2%, while Transport, Storage, Transport Support Activities, Information and Communications grew 0.7%.
The primary sector also contributed to growth, expanding by 1.8%, driven by Agriculture, Livestock, Hunting, Forestry, Logging and Related Activities, which grew 2.0%, the document adds. Mining and Quarrying grew 1.7%, while Fishing contracted 1.1%.
The secondary sector, meanwhile, contracted by 6.0%, hit by Manufacturing, whose output fell 11.2%, while Electricity, Gas and Water Distribution grew 7.1% and Construction grew 0.8%.
INE data show that Agriculture is the largest economic activity, accounting for 31.6% of GDP, followed by Mining and Quarrying, with a 15.0% share. Transport, Storage and Communications account for 8.0% of the economy, while Trade and Repair Services have a 7.3% share.
From the expenditure perspective, final consumption grew 7.9% in the second quarter, supported by an increase in private consumption of 8.4% and public consumption of 6.5%. Exports increased 5.1% and imports 3.1%, while gross capital formation fell 16.5%, reflecting a reduction in inventories compared with the same period in 2025.
The Mozambican economy recovered in the final quarter of 2025, growing 5.1%, reversing four consecutive quarters of contraction that followed the October 2024 general elections and violent protests that left 400 people dead and caused the destruction of infrastructure and businesses.
In the first quarter of this year, INE reported growth of 0.1%, pointing to a still fragile recovery, supported mainly by the tertiary sector. The latest result represents an acceleration in economic activity and the third consecutive quarter of year-on-year growth.
Image: Banco de Moçambique
The Mozambican Government had cut its economic growth forecast from 2.8% to 0.59% for 2026 because of the impact of the floods, and announced a post-flood reconstruction plan worth 102 billion meticais (US$1.4 billion).
“The January 2026 floods affected about 724,000 people in the provinces of Maputo, Gaza, Inhambane, Sofala, Manica and Zambézia, with significant impacts on poverty, food security and livelihoods,” said Inocêncio Impissa, spokesperson for the Council of Ministers, at the end of the body’s meeting on 7 July.
“The macroeconomic impact resulted in a downward revision of 2026 GDP growth from 2.8% to 0.59%,” he said.
The Comprehensive Post-Flood Recovery and Reconstruction Plan approved at the 7 July Cabinet meeting aims to promote “resilient, inclusive and sustainable recovery in areas affected by the floods”, ensuring socio-economic stabilisation, the recovery of livelihoods and strengthened capacity to respond to future disasters, he added.
