Mozambique expects external resources to increase in 2019 – for the 1st time since 2014

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Mozambique expects external resources to increase in 2019 – for the 1st time since 2014

5:30 CAT | 05 Dec 2018

Minister of Economy and Finance Adriano Maleiane. Photo: TVM

Mozambique’s budget proposal for 2019 expects a growth in donations and foreign credits as a percentage of gross domestic product (GDP) for the first time since 2014.

The document has been under discussion since Tuesday in the parliament.

The external resources in the state budget represented 14.2% of GDP in 2014 and dropped to 8.4% in 2015.

It dropped again to 7.5% in 2016, a year many countries cut direct aid to the budget following the scandal of the hidden debts of the Mozambican state.

The trend continued to decrease up to 2018 (6.1% of GDP), with loans and donations growing to 7% in the next year, totalling around €1 billion.

The proposal for 2019 expects revenues of around 249 billion meticais (€3.58 billion) for a total expenditure of 340 billion meticais (€4.885 billion).

The overall deficit (as a percentage of GDP) should rise from 8.1% expected for this year to 8.9% in 2019, mainly due to the increased expenditure on the general elections of 15 October and the start of investments in natural gas.

Source: Lusa