Mozambique’s economy is expected to grow by 5.3 percent in 2018, up from the 4.7 percent forecast for this year, according to the proposed Economic and Social Plan and State Budget bill for the coming year, approved last week by the government, the Mozambican press reported.
The bill approved by the government meeting in an extraordinary session of the Council of Ministers outlines a budget deficit of 77.009 billion meticais (USD1.228 billion), which is 9.7 percent of GDP, said spokeswoman Ana Comoana, who recalled that a budget deficit of 10.7 percent of GDP is forecast for this year.
Expenditure recorded in the State Budget amounted to 374.3 billion meticais ($5.968 million), a year-on-year increase of 37.4 percent, against revenues of 222.86 billion meticais ($3.553 billion).
The spokeswoman and deputy minister of Culture said that the deficit will be met using internal and external credit and external donations, with the latter accounting for almost 2.6 percent of the Gross Domestic Product.
Comoana said that the two documents took into account the national and international macroeconomic context, “with an optimistic outlook for 2018, with economic growth being particularly stimulated by the trend of rising prices of the main exported goods.”
The Mozambican government expects exports of $4.1 billion in 2018 compared to $3.4 billion this year.