Mozambique approves 2027 state budget proposal

The Mozambican Council of Ministers has approved the proposed Economic and Social Plan and State Budget (PESOE) for 2027. The proposal, which will be submitted to the Assembly of the Republic, focuses on macroeconomic stability, fiscal sustainability, and improving population well-being.

Key macroeconomic projections for 2027 include a real GDP growth rate of 1.6% and a deceleration of the average annual inflation rate to 7.0%. The government aims to reduce the budget deficit to 4.6% of GDP and limit domestic credit to 1.9% of GDP as part of a fiscal consolidation strategy.

The total resource envelope is projected at 511.2 billion meticais, matching the planned total expenditure, which represents 28.1% of GDP. This expenditure marks a nominal decrease of approximately 1.8% compared to the 2026 budget. State revenue is expected to reach approximately 427.8 billion meticais (roughly 6.7 billion USD), accounting for 23.5% of GDP. Notably, 3,071.6 million meticais of this revenue is expected to be generated from liquefied natural gas (LNG) operations. Investment expenditure is set at 79.6 billion meticais, funded through both internal and external resources.