Mozambique has gone through tough times over the past five years although it has turned a corner more recently. What are the main fiscal challenges and risks currently and how is the government managing these? Yes. Between 2020 and 2024, Mozambique experienced a gradual path of economic recovery following the 2020 recession, when real GDP contracted by -1.3 due to the combined impact of the Covid-19 pandemic, climate shocks, and security tensions in the north of the country.
In the subsequent years, there were signs of economic rebound, with real GDP growth reaching 5 in 2023 - the highest of the period - driven by the start of liquefied natural gas LNG production and the recovery of the agriculture and mining sectors.
However, in 2024, growth slowed to 1.9, reflecting domestic uncertainty due to the post-election crisis in the last quarter of the year, and a less favourable external environment.