GDP growth was severly hampered by the COVID-19 pandemic in Mozambique, with an estimated seven out of nine sectors contracting during the first nine months of the pandemic. The excellent agricultural season likely cushioned against the immediate effects of the pandemic for the poorest households. The general tax-and-benefit system had a negligible effect on cushioning against income losses. The expansion of the Basic Social Subsidy Program nevertheless provided important income support to the poorest part of the population, underlining the importance of such initiatives.
