MAPUTO, July 8 (Xinhua) -- Mozambique expects its real gross domestic product (GDP) growth to reach 9.5 percent in 2029 as major liquefied natural gas (LNG) projects begin production, the government has announced.
"The government foresees a gradual recovery of economic activity despite a context still marked by external challenges, including restrictive financial conditions, commodity price volatility and climate risks," government spokesperson Inocencio Impissa said at a press conference on Tuesday.
According to the approved fiscal framework, Mozambique's economy is projected to grow by an average of 4.9 percent annually with LNG production, compared with about 2.1 percent without gas projects.
The government also projects inflation to decline from 8.7 percent in 2026 to around 5.5 percent by 2029, while public debt is expected to fall from 72.2 percent of GDP in 2025 to 67.1 percent by the end of the projection period.
Impissa said the fiscal strategy prioritizes domestic revenue mobilization, more efficient public spending and prudent debt management while maintaining investment in infrastructure, agriculture, energy, human capital and economic transformation.
The government acknowledged that risks remain, including climate shocks, security challenges, volatile international markets and tight global financial conditions, but said that it would continue adopting measures to safeguard fiscal stability.
The projections come as Mozambique seeks to capitalize on multi-billion-dollar LNG investments in the Rovuma Basin, regarded as one of Africa's largest natural gas discoveries, while balancing fiscal consolidation with economic recovery following recent climate-related disasters. ■