At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, have led to dramatic improvements in the country's growth rate. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, Mozambique remained dependent upon foreign assistance for 40% of its 2012 annual budget and over half the population remained below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force and smallholder agricultural productivity and productivity growth is weak. A substantial trade imbalance persists although aluminum production from the Mozal smelter has significantly boosted export earnings in recent years. In 2012, The Mozambican government took over Portugal's last remaining share in the Cahora Bassa Hydroelectricity Company (HCB), a signficant contributor to the Southern African Power Pool. The government has plans to expand the Cahora Bassa Dam and build additional dams to increase its electricity exports and fulfill the needs of its burgeoning domestic industries. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. In July 2007, the US government's Millennium Challenge Corporation (MCC) signed a $506.9 million Compact with Mozambique. Compact projects will end in September 2013 and are focusing on improving sanitation, roads, agriculture, and the business regulation environment in an effort to spur economic growth in the four northern provinces of the country. Citizens rioted in September 2010, after fuel, water, electricity, and bread price increases were announced. In an attempt to lessen the negative impact on people, the government implemented subsidies, decreased taxes and tariffs, and instituted other fiscal measures. Mozambique grew at an average annual rate of 6%-8% in the decade up to 2013, one of Africa's strongest performances. Mozambique's ability to attract large investment projects in natural resources is expected to fuel continued high growth in coming years. Revenues from these vast resources, including natural gas, coal, titanium and hydroelectric capacity, could overtake donor assistance within five years.


$28.15 billion (2013 est.)
country comparison to the world: 117
$26.31 billion (2012 est.)
$24.49 billion (2011 est.)

GDP- Real Growth Rate

7% (2013 est.)
country comparison to the world: 19
7.4% (2012 est.)
7.3% (2011 est.)

GDP - Per Capita

$1,200 (2013 est.)
country comparison to the world: 213
$1,200 (2012 est.)
$1,100 (2011 est.)

GDP - Composition By Sector

agriculture: 28.7%
industry: 24.9%
services: 46.4% (2013 est.)

Population Below Poverty Line

52% (2009 est.)

Inflation Rate (Consumer Prices)

4.4% (2013 est.)
country comparison to the world: 143
2.1% (2012 est.)

Labor Force

10.55 million (2013 est.)
country comparison to the world: 49

Labor Force - By Occupation

agriculture: 81%
industry: 6%
services: 13% (1997 est.)

Unemployment Rate

17% (2007 est.)
country comparison to the world: 149 21% (1997 est.)


aluminum, petroleum products, chemicals (fertilizer, soap, paints), textiles, cement, glass, asbestos, tobacco, food, beverages

Industrial Production Growth

8% (2013 est.)
country comparison to the world: 24