Mozambique’s economy is expected to grow by 5.3% in 2018, up from the 4.7% forecast for this year, according to the proposed Economic and Social Plan and State Budget bill for the coming year, approved on Thursday 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 (US$1.228 billion), WHICH IS 9.7% of GDP, said spokeswoman Ana Comoana, who recalled that a budget deficit of 10.7% of GDP is forecast for this year.
Expenditure recorded in the State Budget amounted to 374.3 billion meticais (US$5.968 million), a year-on-year increase of 37.4%, against revenues of 222.86 billion meticais (US$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 alomost 2.6% 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 US$4.1 billion in 2018 compared to US$3.4 billion this year. (macauhub)