Maputo, Aug. 24, 2026 (Lusa) - Mozambique's government improved its fiscal balance in the first half of the year, after revenue rose to €2.48 billion and expenditure fell to €2.54 billion, according to government figures.
According to the Economic and Social Plan and State Budget (PESOE) report for the first half of the year, to which Lusa gained access on Monday, state revenue reached 183.3 billion meticais (€2.48 billion), corresponding to 45.03% of the annual budget forecast. In turn, expenditure totalled 188.25 billion meticais (€2.54 billion), representing 36.16% of the approved annual limit.
The report's figures point to an improvement in public finances compared with the same period in 2025. Government revenue increased by 6.7% compared with the 171.8 billion meticais (€2.32 billion) collected in the same period last year, whilst total expenditure fell by 11.8% compared with the 213.5 billion meticais (€2.89 billion) recorded in the first half of 2025.
«These results indicate a relatively prudent budget execution, although it is necessary to ensure the continuation of efforts to mobilise revenue and rationalise public expenditure», the document states, in which the Government maintains that the economy experienced a moderate recovery during the first six months of the year, following the contraction observed in 2025 in the wake of five months of post-election violence.
At the macroeconomic level, the report notes that «the Mozambican economy showed signs of a gradual recovery», with Gross Domestic Product (GDP) growing by 0.1% in the first quarter of 2026, following the contractions recorded throughout 2025.
At the same time, average inflation stood at 4.57% in the first half of the year, above the annual target of 3.7%, whilst cumulative inflation reached 5.4%, against a backdrop of climate shocks, rising transport costs and higher prices for imported goods.
However, it notes that «this performance highlights a macroeconomic duality: on the one hand, there was a moderate recovery in domestic productive activity; on the other, opportunities for improvement remain, linked to price volatility, climate-related shocks, logistical constraints and the economy's structural limitations».
The PESOE's assessment noted that the implementation of the public budget continues to face opportunities for improvement due to the impacts of extreme weather events, the structural limitations of the economy, and constraints affecting production and trade.
PVJ/ADB // ADB.
Lusa
