# Mozambique economic and fiscal trends

> Live situation record from CLSTR: https://clstr.news/situations/mozambique-economic-and-fiscal-trends
> Updated: 2026-08-27T10:12:37.000Z. Sources: 12. Developments: 2.

In the first half of 2026, Mozambique's economy showed fragile recovery with a 0.10% GDP growth in the first quarter. Economic performance was hindered by extreme weather, including Cyclone Gezani and floods, as well as global tensions contributing to inflation of 7.51% in June.

Public debt rose by approximately 26.78 billion meticais during this period, reaching a total of 1,117,374.3 million meticais. By the end of June, external debt accounted for approximately 565.6 billion meticais. To fund energy, transport, and education, the government secured 891.69 million USD in new external financing, largely through donations from the World Bank and the African Development Bank. To manage liquidity and combat inflation, the central bank has utilized mandatory reserve coefficients.

Concurrently, the Ministry of Finance reported a 3.9 percent decrease in public sector salaries and remuneration, totaling 107.2 billion meticais for the first half of the year. This fiscal tightening follows International Monetary Fund (IMF) recommendations to manage high payroll costs and debt servicing.

Other recent developments include the state insurer EMOSE reporting a 42.8% increase in premiums for 2025, and the Sovereign Wealth Fund generating over USD 2 million in returns from January to June 2026. Additionally, the Administrative Tribunal reported that its oversight prevented approximately 1.25 billion meticais in irregular public spending during the first half of the year.

## Claims

- Mozambique's public debt reached 1,117,374.3 million meticais by the end of June 2026. (corroborated by 2 sources)
- Public debt is split between 565,578.9 million meticais in external debt and 551,795.4 million meticais in internal debt. (corroborated by 2 sources)
- The Central Bank's balance as an internal financier rose from 95,664.5 million to 158,536.8 million meticais during the first half of the year. (corroborated by 2 sources)
- Mozambique secured 891.69 million USD in new external financing during the first half of 2026. (corroborated by 2 sources)
- Of the new external financing, 96.6% was in the form of donations and 3.4% was in credits. (corroborated by 2 sources)
- The World Bank provided 751.3 million USD in donations as the primary financing partner. (corroborated by 2 sources)
- Mozambique's GDP grew by 0.10% in the first quarter of 2026. (single source)
- Inflation in Mozambique reached 7.51% at the end of June. (single source)

## Timeline

### 2026-08-27: Mozambique public sector wage spending falls 3.9 percent

Mozambique's public sector wage expenditure fell by 3.9 percent in the first half of the year to 107.2 billion meticais as the government implements fiscal consolidation measures.

2 sources. https://clstr.news/cluster/mozambique-public-sector-wage-spending-falls-39-percent

### 2026-08-27: Angola and Mozambique report divergent economic trends

Angola's economy grew 8.74% in Q2 2026 led by non-oil sectors, while Mozambique faces debt challenges exceeding 1.1 trillion meticais amid fragile GDP growth and climate impacts.

11 sources. https://clstr.news/cluster/mozambique-public-debt-reaches-11-trillion-meticais-in-h1-2026

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Cite as: Mozambique economic and fiscal trends. CLSTR, https://clstr.news/situations/mozambique-economic-and-fiscal-trends