Now Reading
MEF: Public Debt Rised by 5.2% to $15.2B in 2023

MEF: Public Debt Rised by 5.2% to $15.2B in 2023

The state’s accumulated debt grew by 5.2 per cent in 2023, reaching 15.2 billion dollars (960.6 billion meticals), or 73 per cent of the Gross Domestic Product (GDP), according to figures released on Tuesday (23) by the Ministry of Economy and Finance (MEF).

“Despite this volume incorporating an upward variation of 5.2 per cent compared to the position of the final ‘stock’ of 2022, the debt ratio (debt as a proportion of GDP) of the central government improved for the second consecutive year, moving from 78 per cent to 73 per cent,” explains the 2023 Mozambique public debt report.

The document quoted by Lusa also states that “this improvement is solely explained by the fact that the nominal GDP growth rate was higher than the net change in the debt stock”.

“Despite the positive evolution, gross borrowing requirements, which correspond to the sum of state expenditure not covered by public revenue, remain high, having contracted modestly from 11.8 per cent of GDP in 2022 to 10 per cent of GDP in 2023,” it adds.

In 2019, the total ‘stock’ of public debt totalled just over 12.3 billion dollars (777.3 billion meticals), so in four years this accumulated grew, in nominal terms, by more than 2.8 billion dollars (176.9 billion meticals), equivalent to 23% more.

On 31 December 2023, the total debt contracted externally amounted to more than 10.3 billion dollars (650.9 billion dollars), an increase of 2.4% in the space of a year, while domestic debt, through the issue of Treasury Bills and Bonds, as well as central bank loans, grew by 11.5% to 4.9 billion dollars (309.6 billion meticals).

“It should be noted that in 2023 the rate of growth of domestic debt slowed significantly, but even so, because the external ‘stock’ grew again, the overall ‘stock’ expanded by a greater magnitude than the 3.8 per cent recorded in 2022,” the report adds.

SUBSCRIBE TO GET OUR NEWSLETTERS:

See Also

SUBSCRIBE TO GET OUR NEWSLETTERS:

Scroll To Top

We have detected that you are using AdBlock Plus or other adblocking software which is causing you to not be able to view 360 Mozambique in its entirety.

Please add www.360mozambique.com to your adblocker’s whitelist or disable it by refreshing afterwards so you can view the site.