Mozambique Economic Outlook
August 25, 2020The economy shrunk at the sharpest pace in at least a decade in the second quarter due to the Covid-19 blow, which induced broad-based contractions across the major sectors (Q2: -3.3% year-on-year; Q1: +1.7% yoy). The downturn was primarily driven by a shriveling services sector, which saw activity in the hospitality industry collapse by over a third and commerce severely hampered amid travel restrictions and closure of non-essential shops. The key mining industry also languished as output contracted by over a quarter, further weighing on the outturn. Looking ahead, amid a state of emergency that was extended three times until 30 July, the government declared a second state of emergency on 5 August to further stem the spread of the virus. Although it incorporates a phased-in easing of restrictions starting 18 August, general activity is likely to take a hit again in Q3.
Mozambique Economic GrowthThe Covid-19 outbreak and related containment measures are set to considerably weigh on activity this year, with output expected to decline for the first time in decades. Exports, particularly of coal and aluminum, will retreat amid subdued global demand while investment decisions could suffer due to heightened uncertainty. The government’s massive external debt burden weighs on the outlook. FocusEconomics panelists see GDP contracting 1.3% in 2020, which is down 0.4 percentage points from last month’s forecast, and growing 3.0% in 2021.
Mozambique Economy Data
5 years of Mozambique economic forecasts for more than 30 economic indicators.
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|Exchange Rate||62.43||0.48 %||Jan 01|
|Stock Market||0.1||0.0 %||Jan 06|
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