Mozambique: Government projects 5% growth in 2023

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Mozambique: Government projects 5% growth in 2023

2:44 CAT | 06 Oct 2022

Image: Notícias

The Mozambican government forecasts economic growth of 5% next year, in the 2023 state plan and budget draft approved by the Council of Ministers on Wednesday, Cabinet spokesman Filimao Suaze announced yesterday.

“The Economic and Social Plan and State Budget (PESOE) for 2023 aims to set annual macroeconomic targets, aiming to achieve a growth in Gross Domestic Product (GDP) of 5% and maintain the average annual inflation rate at 11.5%,” Suaze said.

Based on the figures recorded by the National Statistics Institute (INE) up to August, inflation in Mozambique this year stood at 7.62%.

A recent forecast by Standard Bank anticipated Mozambique having inflation of 11.7% by the end the year, with the pace of price rises slowing down in the following months.

For its part, consultancy Oxford Economics Africa expects year-on-year inflation to remain above 12% in 2022.

With regard to economic growth, Mozambican GDP grew by 4.37% in the first half of 2022, and the International Monetary Fund (IMF) – which in May reopened the country’s access to financing – points to a growth of 3.8% by the end of this year.

According to the spokesman for the Council of Ministers, exports are expected to rise to US$8.8 billion (€8.9 billion) in 2023, and reserves to cover three months of imports of goods and services should be amassed.

In nominal terms, the draft 2023 State Budget foresees expenditure of 472 billion meticais (€7.5 billion), about a quarter of which will be covered by borrowing.

Parliament, which resumes this Thursday and will sit until December, will debate the Economic and Social Plan and State Budget for next year in due course.

Source: Lusa