Mozambique expects 7 pct GDP growth in 2016

The Mozambican parliament on Monday passed the final readings of a national plan for 2016 with economic growth envisaged at 7 percent.

The 2016 Economic and Social Plan was adopted by 138 to 83 votes, with the ruling Frelimo party in favor while two major opposition parties, Renamo and the Mozambique Democratic Movement (MDM), against.

The Gross Domestic Product (GDP) growth for 2016 has been revised downwards from an earlier projection of 7.8 percent to 7 percent.

The government expects exports to rise by 7.4 percent to 3.6 billion U.S. dollars. But since imports are forecast to rise by 10.9 percent, the balance of trade will deteriorate.

As for inflation, the government hopes to keep the average 12 monthly inflation rate in 2016 at no more than 5.6 percent.

A State Budget was also approved by 141 votes to 86.

The total expenditure proposed in the budget is 246.1 billion meticais, about 5.04 billion U.S. dollars.

Renamo deputy Mohamed Yassin alleged there was a "hidden budget" for the purchase of armaments.

The state-owned news agency AIM in its report said the total defence and security spending at all levels, accounted for 8.5 percent of the 2016 budget.

The report said the priority social and economic sectors for the fight against poverty accounted for 66.6 percent of planned expenditure, on the conditions that debt servicing and financial operations were excluded. Endit