On Tuesday, March 31, the government promised to issue an official statement on the findings presented in the World Bank’s recent report on Mozambique’s economic update, noting that the document is currently under review.
“The World Bank (WB) is an independent partner; it has its own criteria. What we are doing now is gathering information and analyzing it in light of national criteria, so that the country can then comment on the matter,” stated Minister of State Administration and Public Service Inocêncio Impissa following the conclusion of the regular session of the Council of Ministers.
Quoted by the Mozambique News Agency, Impissa reiterated that the government respects the international institution’s analysis, adding that the country’s economic and social restructuring program, recommended by the World Bank, is in the final stages of development.
“There is also an open window with the IMF to carry out the same exercise, with a view to promoting the growth of the Mozambican economy for the benefit of citizens,” he concluded.
The World Bank warned on Wednesday (25) that the country faces a scenario of high fiscal pressure and insufficient economic growth, advocating for the urgent adoption of structural reforms to ensure macroeconomic stability.
This assessment is included in the latest Economic Update on Mozambique, in which the institution notes a sharp slowdown in economic activity. Real GDP growth fell from 5.5% in 2023 to 2.2% in 2024, and contracted by 0.5% in 2025.
According to the report, persistent macroeconomic imbalances, coupled with fiscal pressures and foreign exchange shortages, continue to limit investor confidence and private sector activity.
Among its key recommendations, the World Bank highlights the need to curb the public sector wage bill, which accounts for about 15% of GDP—one of the highest levels globally. Additionally, interest payments, estimated at 3.7% of GDP, contributed to these expenditures absorbing 87% of tax revenues in 2025.
Although it identifies positive factors, such as the potential resumption of natural gas projects and improvements in the international financial environment, the institution considers that risks remain high, primarily due to sociopolitical factors and external shocks.
Given this scenario, the World Bank advocates for a structural shift in fiscal policy, with consolidation measures, strengthened revenue mobilization, and better debt management as essential conditions for ensuring the sustainability of public finances and addressing growing social demands.
