World Bank Lowers Mozambique Growth Forecast to 1.8%

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World Bank Lowers Mozambique Growth Forecast to 1.8%
World Bank Lowers Mozambique Growth Forecast to 1.8%

Africa-Press – Mozambique. Guinea-Bissau and Equatorial Guinea are the only Portuguese-speaking African countries (PALOP) to escape a downward revision in their growth forecasts for this year by the World Bank.

According to the October 2025 edition of the Africa’s Pulse report released today by the World Bank, the updated forecasts for Gross Domestic Product (GDP) growth this year show a slight improvement for Guinea-Bissau, rising from 5.1% to 5.2% compared with the April estimates.

Equatorial Guinea also saw its growth forecast revised upwards; however, the country remains in recession, with the World Bank now predicting a contraction of 1.6%, an improvement from the 3.1% decline forecast in April.

For the remaining countries, the outlook has worsened compared to the World Bank’s April expectations.

In April, the institution had projected that Angola’s economy would grow by 2.7% this year, but it now anticipates an expansion of just 2.3%, remaining below 3% until at least 2028.

For Cabo Verde, the forecast has been downgraded from 5.9% to 5.4%.

In Mozambique, the World Bank made a significant downward revision, lowering its growth estimate from 3% in April to just 1.8%.

Finally, São Tomé and Príncipe also saw its 2025 growth forecast cut, from 3.1% to 2.5%.

At the regional level, the World Bank projects that Sub-Saharan Africa’s economies will accelerate to 3.8% growth this year but warns that this pace is not sufficient to generate new jobs or reduce poverty across a continent undergoing rapid demographic change.

“The pace of growth remains insufficient to significantly reduce extreme poverty or create the quantity and quality of jobs required to meet the demands of a rapidly expanding labour force,” the Africa’s Pulse report stated, released today in Washington ahead of the Annual Meetings of the International Monetary Fund and the World Bank, taking place next week.

Sub-Saharan African economies “remain resilient,” the World Bank noted, forecasting a slight acceleration in growth this year to 3.8%, up from 3.5% last year — representing an upward revision of 0.3 percentage points compared with the 3.5% growth projected in April.

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