Republic of Mozambique: Selected Issues
IMF Staff Country Reports, February 19, 2026
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- Republic of Mozambique: Selected Issues
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Bibliographic details
- Published: February 19, 2026
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229040846.002
Growth outlook and macro constraints
- Mozambique’s economy has slowed sharply since 2016.
- Two-thirds of the population are below the poverty line.
- Fiscal constraints limit investment in education, health, and connectivity.
- The paper highlights gaps in physical infrastructure and human capital that constrain growth.
Labor market, structural transformation, and job creation
- Over half a million young people enter the job market annually.
- Job creation remains weak as structural transformation has favored extractive industries over manufacturing.
- Informality dominates, accounting for about 95 percent of jobs.
Agriculture, productivity, and rural livelihoods
- Agriculture employs three-quarters of the population.
- Agriculture suffers from low productivity and limited access to inputs and finance.
Human development and social spending
- Human development indicators are among the world’s lowest.
- Fiscal pressures are constraining social and development spending, limiting improvements in education and health outcomes.
Policy priorities and reform agenda
- Promote economic diversification away from reliance on extractive industries.
- Pursue job-rich growth strategies to absorb over half a million new labor market entrants annually.
- Modernize agriculture to raise productivity and expand access to inputs and finance for the three-quarters of the population employed in the sector.
- Improve governance to enhance the efficiency of public spending and attract investment.
- Expand access to finance to support entrepreneurship, formalization, and private-sector-led job creation.
Republic of Mozambique: Selected Issues, IMF Staff Country Reports, February 19, 2026
Content in this bundle
- Republic of Mozambique: Selected Issues; IMF Country Report No. 26/46; January 28, 2026