By MOZTIMES
Maputo (MOZTIMES) – Mozambique maintained macroeconomic stability in the third quarter of 2025, with inflation easing and foreign reserves increasing, even as public spending declined, according to a government statement on Tuesday.
The Council of Ministers reviewed the balance of the Economic and Social Plan and State Budget (PESOE) for the third quarter, showing that 77% of the 283 indicators assessed recorded positive performance, while 23% performed negatively.
Despite adverse factors, key macroeconomic indicators remained stable. Net international reserves rose to the equivalent of five months of import cover, above the 4.7 months projected for the period, while inflation stood at 4.1%, below the annual target of 7%.
State revenue collection reached 263.9 billion meticais, equivalent to 68.4% of the annual target. This is slightly above the 262.4 billion meticais collected in the same period of 2024, a nominal increase of 0.6%.
Public expenditure totalled 314.3 billion meticais, representing 61.3% of the 2025 PESOE execution target. This compares with 360.7 billion meticais (63.5% of the target) in the same period of 2024, reflecting a real decrease of 15.8%.
The spending contraction suggests continued fiscal restraint as authorities seek to maintain stability amid slower external inflows and subdued domestic demand. (MT)
