President Peter Mutharika has said Malawi’s economy is now improving following a good harvest this year.
Mutharika made the remarks during the official opening of 2017/2018 budget session at Parliament Building in Malawi’s capital city, Lilongwe.
According to Mutharika, the economy of Malawi is returning on the wheels of recovery after a slump caused by drought that hit the country in the past two years.
“Mr Speaker Sir, I can see that the economy is returning the wheels of recovery. I am determined to ensure that our economy grows and it will. World Bank and International Monetary Fund (IMF) agreed that we are on the right path.
“The country was recently faced with a number of challenges which included prolonged dry spells and floods which contributed to negative growth in agricultural production.
“In this year 2017, the economy is showing signs of recovery. Therefore projecting the approximated growth rate between 5 and 6 percent. This is the result of good harvests due to good rains and anticipated good performance in manufacturing, wholesale and retail sectors,” Mutharika said.
He added that the stability of Kwacha witnessed in the past year is expected to continue this year. According to Mutharika, strong fiscal management led to the stability of Kwacha in 2016 and it is anticipated that the situation will remain the same in this year 2017.
On annual rate inflation, Mutharika said the rate has been declining steadily in recent months reaching 15.8 percent as of the end of March 2017.
According to the president, this is the lowest level of inflation recorded in recent years and it will help in reducing prices of things such as food and fuel across the country.
Mutharika also said the good rains that the country had in the recent rainy season contributed to microeconomic development.
“On my part, I thank God the almighty for the good rains that has contributed to micro-economic development,” he said.
Meanwhile, the World Bank has resumed budgetary support to Malawi, a development Mutharika described as a sign that the country’s economy is improving.