PM predicts growth of 2.8 per cent

Maputo, 3 Dec (AIM) – The Mozambican government forecasts growth of 2.8 per cent in the country’s GDP in the 2026 financial year, according to Prime Minister Benvinda Levi.

Speaking on Wednesday at the country’s parliament, the Assembly of the Republic, where she introduced the plan and budget for 2026, Levi said the main contributions to growth would come from the extractive industry, with a growth rate of 4.4 per cent, services (4.1 per cent), fisheries (3.6 per cent), construction (3.2 per cent), and agriculture (2.5 per cent).

Levi said the projection for inflation in 2026 is 3.7 per cent. She expected commodity exports to reach 8.4 billion US dollars. The country’s net international reserves, the Prime Minister said, should reach 3.2 billion dollars, enough to cover 4.4 months of imports of non-factor goods and services (excluding imports by the megaprojects).

Levi said that government revenue in 2026 is expected to reach 407 billion meticais (about 6.4 billion dollars, at the current exchange rate).

Public expenditure will be much higher, at 520.6 billion meticais. This leaves the government facing a deficit of 113.7 billion meticais (seven per cent of GDP).

Levi expects the deficit to be financed by domestic debt (2.2 per cent of GDP), foreign grants (3.2 per cent of GDP), and foreign loans (1.9 per cent of GDP).

Levi put an optimistic gloss on this, pointing out that the deficit projected for this year is 8.2 per cent of GDP.

“In light of the limited fiscal space”, said Levi, “we shall continue to bank on the efficient allocation of resources to the priority economic and social areas, and to implement measures that limit public expenditure”.

The Prime Minister called on all Mozambicans to become involved “in maintaining peace, stability and national cohesion, factors that are indispensable for us to continue building a more prosperous and inclusive Mozambique”.
(AIM)
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