The Gross Domestic Product (GDP) experienced growth of 4.67% in the second quarter of 2023, driven primarily by expansion in the primary sector, according to the Mozambican National Statistics Institute (INE). This performance follows a 4.17% growth registered in the first quarter, resulting in a cumulative economic growth rate of 4.42% for the first half of the year, according to INE data.
The primary sector exhibited substantial growth, particularly in the Mining Extraction Industry, which saw a remarkable variation of 42.71%, contributing significantly to the overall GDP growth. Agriculture, Livestock, Hunting, Silviculture, and Forest Exploitation also contributed positively, with an increase of approximately 3.11%.
The tertiary sector posted a 4.24% growth rate, led by the Transport, Storage, and auxiliary activities of transport sector, which grew by 6.85%. The Information and Communications sector also made substantial gains, with a growth rate of 6.85%. The Hospitality and Restoration sector experienced a variation of 5.51%, while Financial Services grew by 3.40%.
On the other hand, the secondary sector contracted by 6.52%, mainly due to a significant decline in the Construction branch, which saw a negative variation of 10.43%. The Manufacturing Industry also declined by 7.72%, and the electricity, gas, and water distribution sector fell by 0.18%.
The branches of Agriculture, Livestock, Hunting, Silviculture, Forest Exploitation, and related activities collectively accounted for 25.89% of the second quarter’s total GDP. The Transport, Storage, and auxiliary activities of transport and Information and Communications sectors contributed 10.36% to the GDP. The Commerce and Repair Services sector represented 8.92% of the GDP, while the Mining Industry sector accounted for 7.48%.
Mozambique’s government predicts that the economy will continue to grow, with a projected GDP growth rate of 5% for the full year of 2023.This growth in GDP reflects the resilience and expansion of various sectors in Mozambique’s economy, providing a positive outlook for the country’s economic development in the coming years.
