Maputo, May 7, 2025 (Lusa) - According to data compiled today by Lusa from the budget proposal, Mozambique's public deficit is expected to fall to 126.878 billion meticais (€1.755 billion) in 2025, equivalent to 8.2% of the country's gross domestic product (GDP).
According to the proposed Economic and Social Plan and State Budget (PESOE) 2025, which will begin to be discussed in plenary session in parliament in Maputo on Thursday, this year's deficit will be less than 155. 815 million meticais (€2.155 billion) in 2024 (11.1% of GDP) and 145,536 million meticais (€2.013 billion) in 2023 (13.4% of GDP).
To plug the hole in the public accounts, the government plans to issue domestic debt worth 35.094 billion meticais (€485 million), compared to 38.984 billion meticais (€539 million) issued in 2024.
It also plans to resort to external borrowing, which will increase by 0.6 percentage points compared to 2024, to 29,973 million meticais (€415 million), corresponding to 1.9% of GDP.
Another way of financing the Mozambican public accounts deficit in 2025 will be through external donations, with the document estimating that an additional 0.8 percentage points will be raised, corresponding to 58. 236 million meticais (€806 million), according to the government's budget proposal. This was the first budget proposal prepared by the government led by Daniel Chapo, who was sworn in as Mozambique's fifth president last January.
In the PESOE, Mozambique's government forecasts GDP growth of 2.9% for 2025, an average annual inflation rate of 7%, exports of goods worth US$8.431 billion (€7.379 billion) and gross international reserves of US$3.442 billion (€3.045 billion), equivalent to 4.7 months of coverage of imports of goods and services, excluding megaprojects.
State revenue for the whole year is expected to amount to more than 385,871 million meticais (€5.347 billion), equivalent to 25% of GDP, and total expenditure to 512,749 million meticais (€7.107 billion), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.
PVJ/ADB // ADB.
Lusa
