FX.co ★ Mozambique Economy Enters Recession in Q1

In the first quarter of 2025, Mozambique's economy contracted by 3.9%, following a revised downturn of 5.7% in the previous quarter, marking the country's entry into a technical recession. This economic decline occurred amidst ongoing social unrest following elections. The slump was predominantly attributed to a significant 16.2% reduction in the secondary sector, particularly impacting utilities, which dropped by 22.5%, manufacturing which decreased by 14.8%, and construction falling by 10.8%. The tertiary sector experienced a substantial decrease of 8.3%, with the hotel and restaurant industry plummeting by 21.6%. The sectors of transport, storage, and communications declined by 21.3%, while trade and repair services saw an 18.1% drop. However, a brighter note was seen in the primary sector, which grew by 2.1%, primarily due to a 6.5% increase in mining and a 1.3% rise in fishing.