Mozambique's 2027 budget framework sees narrower deficit, modest growth

MAPUTO, Oct 14 (Reuters) — Mozambique's cabinet has approved the key parameters of next year's budget, foreseeing a narrower fiscal deficit and modest economic growth. The budget framework, which now goes to parliament, projects a 2027 deficit of 4.6% of gross domestic product (GDP), down from a forecast of 7.0% of GDP in the 2026 budget Economic growth in 2027 is seen at 1.6% The 2026 budget predicted growth of 2.8%, but recent projections from international institutions are less optimistic The International Monetary Fund estimates 1.0% growth this year for the resource-rich southern African nation, versus 0.5% predicted by the African Development Bank A heavy debt burden is one of Mozambique's most pressing economic challenges Problems date from a 2016 hidden-debt scandal that wrecked investor confidence and curbed access to funding Matters have been worsened by delays to major natural gas projects that had been expected to boost exports, revenue and government finances (Reporting by Custodio Cossa; Writing by Sfundo Parakozov; Editing by Alexander Winning and Clarence Fernandez) ((Sfundo.Parakozov@thomsonreuters.com;)