Mozambique Economic Update: From Fragility to Stability – Why Fiscal Reforms Cannot Wait (March 2026)

Country: Mozambique Source: World Bank Please refer to the attached file. 10th Mozambique Economic Update 2026 Ambitious and credible fiscal consolidation measures are needed to restore debt sustainability and create fiscal space to meet growing social needs. As the population continues to grow rapidly, the demand for teachers and health professionals intensifies. Keeping pace with these growing needs would require a substantial increase in resources. However, such an expansion is not feasible under current fiscal constraints, which risks further deterioration in service quality and accessibility and exacerbating existing regional disparities. The window for action is narrowing rapidly, with further delays increasing the costs for the government, the private sector, and the population. Addressing fiscal and external imbalances would require strong political commitment, policy coordination, and a clear communication strategy to gather support from a broad range of stakeholders.

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