Brazzaville, May 27, 2026 (Lusa) - The African Economic Outlook report said on Wednesday that an extractive sector recovery and increased investment would support economic growth in Mozambique of 2.1% in 2026 and 3.5% in 2027.
The report, presented at the annual meeting of the African Development Bank (AfDB) in Brazzaville, said that "recovery of the extractive sector, strong private consumption driven by rising incomes and increased investment" underpin 2026 growth of 0.2 percentage points compared to 2025.
The institution also forecast that inflation would moderate to 5.7% between 2026 and 2027, "following the easing of temporary supply-side pressures," aligning with the objective of the country's central bank, the Bank of Mozambique, "to maintain inflation at a single-digit level."
The report projects the budget deficit to rise to 6.4% in 2026 and 7.0% in 2027 "due to increased interest payments and reduced grants for project financing."
The report stated that "higher production of liquefied natural gas and minerals" would drive an increase in imports, leading to a current account deficit of 28.8% of gross domestic product (GDP) in 2026 and 32.7% in 2027.
The AfDB stated that risks to Mozambique's economy include climate shocks, political instability, the conflict in Cabo Delgado (a northern province facing insurgency), and global trade tensions.
The institution maintained that "strengthening governance and investing in climate resilience" could mitigate these risks.
The AfDB forecast Africa's economic growth to slow to 4.2% in 2026, or even to 4% if the Middle East conflict continued.
The AfDB Group presented the report at its annual meeting, where representatives from the 81 member countries – including heads of state, finance ministers, planning ministers, and central bank governors – would analyse the 2025 progress and the major challenges ahead.
The theme for the 2026 meetings, which run until Friday in Brazzaville, the capital of the Republic of the Congo, is "Mobilising Africa’s Development Financing at Scale in a Fragmented World."
Health measures against Ebola mark this year's meetings. Authorities reinforced these measures in Brazzaville, which is divided from the Democratic Republic of the Congo (DRC) by a river.
The bank also altered the format of the meetings, adopting "a hybrid format, allowing all delegates to fully participate in the proceedings, regardless of travel and logistical conditions."
*** Lusa travelled at the invitation of the African Development Bank (AfDB) ***
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