A local economic expert in Malawi has said that the economic projections for the country by International Monetary Fund (IMF) give a true picture of Malawi’s economic situation.
The expert, Joshua Mbewe, said Malawi is having a slight change of economic atmosphere compared to the past year.
In an interview with Malawi24, Mbewe disclosed that the Gross Domestic Production (GDP) is expected to be 4 to 5 percent after the agricultural season.
“Generally 2016/2017 Agricultural growing season is better than the past 3 years. We have had good rains throughout the country and it promises to be a good year for the country as far as food security is concerned.
“Surplus will be realized and it will enhance economic activities which will also have a positive impact on inflation for the coming months. After harvesting, the price of maize will go down and will have again a positive impact on the price of standard basket of good,” said Mbewe.
He further advised authorities to consider having fiscal discipline for the inflation rate decline to be effective.
“From 2001 to 2017 inflation rate was averaged at 15.31% and reaching an all-time high of 37.9% in February of 2013 and a record low of 6.3% in December of 2010. However though we had these good statistics cost of living still went up.
“Now we have just recorded 16.1% in February 2017 yes this is a right direction, but we need to find ways how we can cut this figure and make sure it maintains the descending direction. We will only start enjoying the fruits of this if we can continue with the financial fiscal discipline. The positive impact will be felt only if we sustain the inflation statistics,” he explained further.
The IMF projected economic growth for Malawi due to agriculture and telecommunication sectors that are to do well for the country’s GDP.