The cost of living will continue to rise in 2023, Prime Minister Adriano Maleiane warned Friday.

Speaking at the Assembly of the Republic, where he presented the government's Economic and Social Plan and the State Budget for 2023, Maleiane said that the annual inflation rate could reach 11.5% next year, compared to 10.7% this year. GDP is expected to grow by 5%.

The government, said Maleiane, drew up its plan and budget in an international context strongly marked by the consequences of Russia's war in Ukraine, the prevalence of terrorist raids in Cabo Delgado province, in northern Mozambique, and the increase in extreme weather events resulting from climate change. All of this has aggravated the already complex challenges of managing Mozambique's public finances.

Maleiane believes that by 2023 economic growth will be driven by more dynamic private investment, particularly in agriculture, industry and construction. To stimulate the economy, the government intends to make business opportunities worth 134.2 billion meticais (around 2.1 billion dollars at the current exchange rate) available to the private sector for the supply of goods, services and investments.

"Due to the growth in foreign demand, rising prices on the international market and the start-up of the floating liquefied natural gas (LNG) platform, exports of goods and services are expected to increase," said the Prime Minister. This would be a "historic reduction" in Mozambique's trade deficit.

The 2023 budget puts total public spending for the year at 472.1 billion meticais. 26% of the budget goes to education and 13% to health, the Minister of Economy and Finance, Max Tonela, told the Assembly.

"The government continues to focus on financing the social sectors," said Tonela, "particularly education, health and social assistance, seeking to provide primary services to the public."

He added that the investment in roads and bridges planned for 2023 is more than 500 billion meticais. (AIM)