Mozambique’s budget deficit should be 8.9 percent of GDP in 2019

19 August 2019

Mozambique’s budget deficit in 2019 should stand at 8.9 percent of gross domestic product, a figure 80 points lower than that recorded in 2016, said the minister of Economy and Finance, Adriano Maleiane.

Cited in the Friday edition of the Maputo-based daily Notícias, Maleiane explained that the improved balance of public accounts was achieved by increased revenue collection, streamlined public spending and reform of state-owned enterprises.

Even though the government has been forced to adopt more restrictive state budgets in recent years, more funds have been channelled to social areas, namely health and education, he explained.

Maleiane provided an overview of macroeconomic performance in the last four years (2015-2018), indicating that gross domestic product achieved average growth of 4.4 percent, the inflation rate was around 10.6 percent, exports reached US$15.3 billion and imports had an average value of US$22.1 billion.

Also on Friday, President Filipe Nyusi opened the new offices of the Ministry of Economy and Finance, twin towers with 19 floors where a thousand civil servants will work, plus five underground levels for vehicle parking.

The building’s construction cost 4.7 billion meticais (about US$77 million), financed by a local bank on a financial leasing basis. Maleiane indicated that it was the best option because the cost is not classified as debt but rather as payment of services, of a rent. (Macauhub)