Mozambique’s economy expanded 1.7% year-on-year in the second quarter of 2026, building on a modest 0.1% gain in the previous quarter to mark three consecutive quarters of expansion.
The data, released by the National Institute of Statistics (INE) on Thursday, highlight a accelerating economic turnaround led by consumer-facing service sectors and stable agricultural production across the southern African nation.
The tertiary sector served as the primary growth engine with a 2.5% increase. Robust domestic demand boosted hotels and restaurants by 14.5%, while financial services generated a 4.2% gain.
The primary sector advanced 1.8%, underpinned by a 2.0% expansion in agriculture, forestry, and livestock activities alongside a 1.7% rise in mining. A 1.1% decline in fishing partially offset these gains.
Severe industrial friction dragged the secondary sector down by 6.0%. A sharp 11.2% drop in manufacturing outweighed positive output in utility distribution, up 7.1%, and construction, which edged up 0.8%.
This Q2 performance marks a gradual stabilization for Mozambique’s macroeconomy. The nation continues navigating fiscal tightropes following election-related uncertainty and inflationary spikes earlier this year caused by international oil price volatility.
Growth momentum is expected to pick up further in late 2026 as heavy infrastructure investments resume in the gas-rich northern Cabo Delgado region.
Large-scale liquefied natural gas (LNG) projects led by global energy firms are providing medium-term support to Mozambique’s overall economic outlook.
