Mozambique’s economy is now expected to grow by just 0.9 percent in 2026 after the World Bank issued a steep downward revision in its latest Global Economic Prospects report released in Washington on Thursday.
The 1.9‑percentage‑point cut is the sharpest adjustment among Portuguese‑speaking African countries and reflects what the Bank describes as worsening global conditions driven largely by the ongoing conflict in the Middle East.
The report warned that the conflict has disrupted global supply chains, pushed up energy prices and heightened uncertainty across emerging markets.
These pressures are weighing heavily on commodity‑dependent economies such as Mozambique where last year’s post‑election unrest had already tipped the country into recession, the bank said.
Other Portuguese‑speaking African countries also saw their forecasts reduced.
Angola’s growth projection was trimmed to 2.4 percent, Cabo Verde’s to 4.8 percent, Guinea‑Bissau’s to 4.8 percent, and São Tomé and Príncipe’s to 2.9 percent.
Equatorial Guinea faces the steepest decline, with its economy now expected to contract by 3.5 percent.
The downgrade comes as part of a broader revision for the sub‑Saharan Africa region whose growth outlook has been cut from 4.3 percent to four percent.
The bank said the Middle East conflict is expected to overshadow current growth drivers, including structural reforms and new trade agreements, and could worsen food insecurity due to reduced fertiliser use and rising production costs.
While oil‑exporting countries such as Angola and Nigeria may see short‑term gains from higher prices, the Bank warns that most African economies will face more challenging macroeconomic conditions, including higher import bills and tighter fiscal environments.
JN/APA