Mozambique experienced increasing pressure on its external accounts in 2024, with the combined current and capital account deficit widening to $2.23 billion, representing 10.1% of GDP—a 26.4% increase from the previous year. These key details were published over the week-end by the Government.
The deterioration was primarily driven by a rising current account deficit of $2.49 billion, fueled by a 37% increase in the primary income deficit, an 11% increase in the services account deficit, and an 18.3% drop in positive current transfers.
Despite this imbalance, Mozambique attracted $3.55 billion in foreign direct investment, a 41.6% rise largely directed towards extractive industries.
This inflow helped the country maintain an overall balance of payments surplus of $211 million and increase international reserves to $3.8 billion, covering over five months of imports.
However, Mozambique’s net international investment position worsened, as liabilities rose faster than assets, reaching $71.3 billion and weakening the country’s financial autonomy.