Mozambique: Public deficit expected to fall to €1.755B in 2025 – government

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Mozambique: Public deficit expected to fall to €1.755B in 2025 – government

2:00 CAT | 07 May 2025

File photo: Lusa

The Mozambican public accounts deficit is expected to fall to 126,878 million meticais (€1,755 million) in 2025, equivalent to 8.2% of the country’s gross domestic product (GDP), according to data compiled today by Lusa from the budget proposal.

According to the proposed Economic and Social Plan and State Budget (PESOE) 2025, to be discussed in a plenary session at the Assembly of the Republic in Maputo starting this Thursday, this year’s deficit will be less than 155,815 million meticais (€2,155 million) in 2024 (11.1% of GDP) and 145,536 million meticais (€2,013 million) in 2023 (13.4% of GDP).

To plug the gap in public finances, the government plans to issue domestic debt over the course of the year in the amount of 35,094 million meticais (€485 million), compared to the 38,984 million meticais (€539 million) issued in 2024.

It also plans to resort to external debt, which will increase by 0.6 percentage points compared to 2024, to 29,973 million meticais (€415 million), corresponding to 1.9% of GDP.

Another way of financing the deficit in Mozambican public accounts in 2025 will be through external donations, with the document estimating that it will raise an additional 0.8 percentage points, corresponding to 58,236 million meticais (€806 million), as predicted by the government in the budget proposal, the first prepared by the executive led by Daniel Chapo, who was sworn in as the fifth President of Mozambique last January.

In the PESOE, the Mozambican government forecasts GDP growth of 2.9% for 2025, an average annual inflation rate of 7%, exports of goods worth US$8,431 million (€7,379 million) and Gross International Reserves of US$3,442 million (€3,045 million), equivalent to 4.7 months of coverage for imports of goods and services, excluding megaprojects.

State revenue for the whole year is expected to amount to more than 385,871 million meticais (€5,347 million), equivalent to 25% of GDP, and total expenditure to 512,749 million meticais (€7,107 million), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.

Source: Lusa