Mozambique’s economy grew by 3.68 per cent in the third quarter of 2024, driven mainly by the extractive industry and the primary sector, according to the National Statistics Institute (INE) report on national accounts.
According to the organisation, the Gross Domestic Product at market prices (GDP) showed a ‘positive variation of 3.68%’ compared to the same period in 2023. This growth brings the accumulated GDP until September 2024 to 3.80 per cent.
The report highlights that the primary sector was the main driver of this performance, with an expansion of 6.4 per cent. Within this group, the mining industry stood out with growth of 13.62 per cent, followed by agriculture, livestock, hunting, forestry and logging, which recorded a positive variation of 2.23 per cent.
The fishing sector performed more modestly, but still positively, growing by 0.91 per cent year-on-year in the same period.
In general terms, Mozambique’s GDP should reach 1.5 billion meticals in 2024, representing an expected annual growth of 5.5 per cent, according to official government projections. However, the impacts of the post-election demonstrations and stoppages, which have been ongoing since 21 October, may lead to a revision of these estimates, as Mozambican President Filipe Nyusi admitted earlier this month.
On the other hand, the governor of the Bank of Mozambique, Rogério Zandamela, said on 8 November that so far the growth forecasts have been maintained, given that they already incorporated the possibility of instability. According to Zandamela, the rapid dissipation of tensions could guarantee the maintenance of the economic targets previously set.
‘Our analysis already incorporated the risks associated with post-election instability. So far, the data indicates that the situation does not require adjustments to the forecasts, as long as these risks dissipate in the short term,’ explained the governor.
The post-election demonstrations were triggered after the release on 24 October of the results of the 9 October general elections, which declared Daniel Chapo, of the Mozambique Liberation Front (Frelimo), the winner of the presidential election with 70.67% of the vote.
The opposition candidate, Venâncio Mondlane, who came second with 20.32 per cent, contested the results, which are still awaiting validation by the Constitutional Council.
The INE data reinforces that the primary sector continues to play a crucial role in the country’s economic growth, but political uncertainties could influence the overall performance of the economy at the end of the year.
