The President of Mozambique, Filipe Nyusi, on Wednesday approved and the bill for the 2020 State Budget and sent it out for publication, thus approving the Economic and Social Plan, said the President of the Republic in a statement issued in Maputo.
The Economic and Social Plan (PES) and the General State Budget (OGE) for 2020 were approved by the Mozambican parliament on 16 April, with the majority vote of Frelimo, the governing party since the country’s independence in 1975.
The 2020 budget includes expenditure in the amount of 345.4 billion meticais (one dollar equals 67 meticais at the current exchange rate).
For this year, the government projects Gross Domestic Product (GDP) growth of 2.2%, which compares with an initial forecast of 4.0%, but was revised downward due to the economic and financial effects of the COVID-19 pandemic.
The government also sets out an increase in the annual average rate of inflation of 6.6%, against 2.8% in 2019 and an initial forecast of 4.4%, whilst also ensuring a level of net international reserves to cover 5.8 months of imports of goods and services, excluding imports of major projects.
With regard to exports, for 2020 the government expects a reduction of 6.5% compared to 2019, also due to a drop in demand on the international market, and the fall in the prices of commodities.
Source: Macauhub