Quick answer: Mozambique's economy is growing very slowly. The World Bank reports a 0.2% contraction in 2025, real GDP growth of 1.7% year-on-year in the second quarter of 2026, and projects growth of 0.6% for 2026, rising to 2.5% by 2028 (World Bank). With population growing faster than the economy, income per person is falling, and about 81% of Mozambicans live below the World Bank's $3-a-day poverty line (IGC, citing the March 2026 Economic Update).
The key numbers
| Indicator | Value | Source |
|---|---|---|
| GDP growth 2025 | −0.2% | World Bank |
| GDP growth Q2 2026 (year-on-year) | 1.7% | World Bank |
| GDP growth projection 2026 | 0.6% | World Bank |
| GDP growth projection 2028 | 2.5% | World Bank |
| National poverty rate | 62.9% (2022), up from 48.4% (2014/15) | World Bank |
| Below $3 a day (2021 PPP) | about 81% | World Bank, March 2026 |
| Share of poor in Nampula and Zambézia | 46% | World Bank |
| Unemployment rate (ILO model) | 6.6% (2025) | World Bank WDI |
Why is growth so weak?
Several pressures overlap: ongoing low-level attacks by armed groups in Cabo Delgado and neighbouring provinces, high public debt, tight credit, climate shocks such as cyclones and drought, and delays to large gas projects that were expected to drive growth. When the economy grows less than 3% a year, it does not keep up with population growth.
$25 plants a farmer's season in Zambézia.
Paid straight to the local seed shop. You get the receipt, a field photo and a harvest update.
A gift, not an investment. Not tax-deductible.
What slow growth means for families
- Rural families depend on their own harvests. Slow growth means fewer buyers, lower prices for what they sell and fewer jobs off the farm.
- Urban informal workers face rising costs and fewer customers.
- Young people enter a labor market that adds few formal jobs.
In practice, a family's year still depends mostly on the rains and on whether they could plant on time.
Is there an economic crisis in Mozambique?
By most measures, yes: an economy that contracted in 2025, high poverty and stretched public finances. But the crisis is uneven. Large projects and cities can recover quickly; smallholder farmers recover only when they can plant, harvest and sell.
What would help
- Agricultural productivity, since farming employs most people
- Peace and security in the north
- Using resource revenue for roads, power and schools, not just debt service
- Financial tools that reach the informal economy
What you can do
Macroeconomics is slow; a harvest is not. MBC pays a named farmer's local seed and fertilizer shop, and you receive the receipt and a harvest update. Sponsor a farmer from $25, or read Why Mozambique's Low Unemployment Rate Hides an Underemployment Crisis.
Sponsorships are gifts, not investments, and are not tax-deductible.
Sources: World Bank, Mozambique overview (updated September 2026) · IGC, June 2026 · World Bank WDI: unemployment