Mozambique: Budget proposal projects 3.2% GDP growth for 2026

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Mozambique: Budget proposal projects 3.2% GDP growth for 2026

2:38 CAT | 16 Oct 2025

in file CoM

The Mozambican government forecasts economic growth of 3.2% in 2026, according to the state budget proposal obtained by Lusa, which would raise the country’s gross domestic product to 1.665 trillion meticais (€22.3 billion).

The Economic and Social Plan and State Budget (PESOE) for 2026, approved by the government and due for parliamentary debate, follows growth of 2.9% forecast for 2025 and 2.2% in 2024, both affected by post-election unrest in October 2024. Growth had been 5% in 2023.

The budget projects a nominal GDP of 1.544 trillion meticais (€20.7 billion) for 2025, compared with 1.453 trillion meticais (€19.5 billion) in 2024. Annual inflation is expected to moderate to 3.7% in 2026, down from 7% this year and 3.2% in 2024, while net international reserves are forecast to cover 4.4 months of imports, versus 4.7 months in 2025 and five months in 2024.

Exports are projected to rise from $8.231 billion (€7.06 billion) in 2025 to $8.436 billion (€7.24 billion) in 2026, remaining below imports, which are expected to grow from $9.254 billion (€7.94 billion) to $9.549 billion (€8.19 billion).

“The objective is to consolidate public accounts, stabilise debt indicators and maintain space for productive investment,” said Secretary of State for Treasury and Budget Amílcar Tivane, additionally noting that global shocks and geopolitical factors continue to affect Mozambique’s projections.

The 2026 budget envisages public expenditure at around 32% of GDP, revenues at 28% of GDP, and a fiscal deficit of about 6% of GDP. The shortfall will be financed through grants, domestic and external borrowing, with tighter controls to minimise risk. By comparison, the projected deficit for 2025 is 5.6% of GDP.

Tivane said the government would continue to prioritise fiscal credibility and transparency while implementing reforms to strengthen revenue collection.

Source: Lusa