Malawi President Peter Mutharika has said the country is economically on track to recovery and blasted the International Monetary Fund (IMF) for giving people what he called ‘the false impression’ that his reforms were not working.
The IMF experts had said last month that Malawi was flying through a serious economic turbulence because of weak fiscal measures being implemented by the Mutharika regime.
“The Malawian economy is facing difficult challenges… Real GDP growth is projected to fall to 3 percent in 2015 from 5.7 percent in 2014″ said the IMF mission to Malawi while singling out Peter Mutharika’s gratuitous spending as one reason for the current economic meltdown.
But the president said the remarks were misleading and not reflective of the country’s economic status.
“The IMF mission has undertaken the seventh review of the Extended Credit Facility (ECF) arrangement and examined our country’s macroeconomic context. The mission commended the Government for actions taken to bolster the financial sector, including the action on recapitalization of locally-based banks to significantly reduce vulnerabilities in the financial sector.
“The IMF confirmed that Malawi has met most of the program targets, including Net International Reserves and Net Domestic Assets of the Reserve Bank of Malawi. This is important because some have given our people a false impression that the entire economy is off-track.” said the President while opening the 46th session of the Malawi National Assembly in Lilongwe.
President Mutharika, who was highly selective of the IMF statement, clarified while the international monetary body had pinned Malawi’s economy as being off track.
“We met all the targets except for the target of Central Government net domestic borrowing. We had an over-expenditure of 2% of GDP in the second half of the 2014/2015 year in wage bill. The country also delayed the implementation of structural improvements in the Public Finance Management. These are the ones that led to a conclusion that the EFC programme is off-track.
Mutharika’s full statement can be downloaded by clicking here