Mozambique’s Gross Domestic Product (GDP) growth forecast has been revised downward to 0.9 percent due to the impact of floods, economic shocks, and other factors continuing to weigh on economic activity.
The government’s initial forecast pointed out that the GDP growth could reach 2.8 percent.
According to Salim Valá, Minister of Planning and Development, speaking to reporters on Wednesday, in Maputo, on the sidelines of the 2nd National Climate Finance Conference, the country’s economy continues to show moderate growth, with signs of recovery in certain sectors.
“Economic shocks and the effects of flooding continue to impact economic performance, constraining the recovery of growth. There are signs of a turnaround, but the situation requires caution. The government is now implementing an Economic Reconstruction and Growth Plan to reverse the economic trend”, he said.
The minister also expressed his concern at the forecast of El Niño weather phenomenon, which could affect 52 districts. The country’s Institute of Meteorology (INAM) points out that in November and December, there are clear signs of a rainfall deficit in the southern and central regions, while the northern part of the country will receive above-normal rainfall.
“The government is taking concrete precautionary measures so that, when El Niño arrives, it does not severely disrupt household livelihoods. The effects of this climate phenomenon could extend beyond national borders, also affecting other countries”, he said.
The first National Climate Finance Conference was held in 2025, approximately one month after the preparation of the National Climate Finance Strategy 2025–2034. The inaugural edition established a dialogue platform involving the government, the private sector, financial institutions, cooperation partners, and civil society.
Source: AIM