Knowledge Note

Mozambique’s economic performance over the past two decades has been strong. The government pursued a structural reform program focused on facilitating private-sector-led growth in a context of macroeconomic stability, more efficient fiscal policy and significant donor support. Mozambique’s economy registered an average annual growth rate of nearly 8 percent between 2001 and 2012. Agriculture, which employs about 78 percent of the active population, accounts for about 25 percent of gross domestic product (GDP), followed by trade and retail services at 12 percent. Manufacturing declined in relative terms and accounted for just 10 percent of GDP in 2012, compared to 17 percent ten years ago.