Malawi to achieve single digit inflation in 2018

May 19, 2017 Politics 27
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Goodall Gondwe

Minister of Finance Goodall Gondwe Government has said Malawi is on course to achieve single digit inflation next year.

The country’s inflation is currently at 14.6% following an average of 21.8 percent in 2016 and Gondwe is optimistic that the rate will continue to subside in the next 12 months.

Goodall Gondwe
Goodall Gondwe: Upbeat Malawi’s economy will pick up.

Speaking in Parliament when presenting the 2016/17 national budget on Friday, Gondwe said the strong fiscal and monetary policies the International Monetary Fund (IMF) told Malawi to implement have sustained the recovery which is continuing into 2017.

“[The recovery] is strongly expected to continue to gather strength in 2018, when it is projected that single digit inflation that has been unsuccessfully pursued for the past seven years could prevail,” said Gondwe.

Gondwe said the downward trajectory of both food and non-food inflation led the Reserve Bank of Malawi (RBM) to reduce its policy rate to 22 percent in March this year from 27 percent at its peak.

The minister hoped that with a continuation of this trend in inflation, RBM will reduce the policy rate further and generate a continued fall of rates of interest leading to improved access to credit by the private sector.

He added that sustaining the favourable economic environment could provide the linchpin of a needed robust growth since a number of companies are already considering to expand production and increase the recruitment of labour because of the vast improvement in the availability of forex and the expectation of further interest rate reduction.

In 2015 and 2016 Malawi had poor crop harvests due to drought and floods experienced in many parts of Malawi. This reduced growth in such sectors as manufacturing, energy and water supply but the economy began to recover late last year.

This year, the economy is expected to register an increased growth rate of 5 to 6 percent.

The minister however warned that a lot has to be done to perfect economic management in Malawi saying careless use of resources can reverse the gains made so far. He also noted that government need to do more to adopt basic sound fiscal management practices as needed to routinize bank reconciliations.

“As the recent forensic audits have shown, lack of systematic reconciliations have resulted in inexplicable use of huge amount of resources. It is therefore, imperative that on completion of the current audit by independent auditors regarding the remaining K236 billion, further transparency of our fiscal system, must be routinized,” said Gondwe.

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27 Comments

  5. The money that you have budgeted will go in your pockect, packed in your houses, don’t fool us . How many times have you been saying that, tired of you

  6. Amalawi Tisasekelere Gondwe Ndi Munthu Wabodza Kwambiri Kodi Ndiriti Watinamidza Kuti Chuma Chikuyenda Bwino Chonde Tikamaika Ma Comment Wo Tizinena Chilungamo Zizatipweteka Tokha Mtsogolomu

  7. I don’t think so, Malawi will never change to the better again, this guy is talking what he’s dreaming at night, don’t listen what ever he said..

  8. I beg to differ with you,sir. Unless we unanimously agree to rub/erase the other digit mannually,we will never realise that dream in this country which is full of pick_pocketers.

  9. in 2018? this is 2017.i doubt if this is achievable,lets wait and see otherwise economics teaches us that we must live within our means,but is Malawi walking un this philosophy? we must learn to spend less,but invest more and we really need very serious fiscal discipline and above all these,Malawians and our leaders we must learn to fear God at all times

  14. Mu 2015 Gondweyo anatinamiza kuti mu 2016 kwacha mphamvu yibweleramo pang’ono titafika mu 2016 anatinamizanso kuti 2017 kwacha mphamvu ibweleramo pang’ono panopa tili mu 2017 ikutchulidwa 2017 bwanji a Gondwe nkhani zinazi mutangozisiya why not just to keep quiet if there is no change in our economy coz since 2011-2012 MW kwacha keep losing its value up to now shame on u, may be we must wait next 10 years

  15. Ngati ndalamazo zilipo osango pereka bwanji Mufuna ziyandikire kampeni pamene anthu anayamba kale kudanda wula kuti zinthu sizilibwono ndiye inu Muti chaka chamawa

  16. THE HON. MINISTER OF FINANCE, MR.G.GONDWE: MAFOTOKOZEDWE NDI MUNDANDA WAZACHUMA,BWANA UKUMVEKA BWINO NDITHU. Koma bvuto limazapezeka kumapeto a chaka chandondomeko yaza chuma: monga mwafotokoza kuti production ya makampani yikwelako ndi nkhani ya bwino poti ipatsa anthu ntchito. Bwana, nthawi zina kumaonetsa ndi angati adalembedwa ntchito ndi bwino pofuna kuthetsa m’nyozo: Zikomo kaamba ka chuma chimene BOMA lapeleka ku unduna wamaphunziro, ndiri ndi chikhulupiliro tsono kuti anyamata ndi atsikana 30,000 womwe adamaliza maphunziro a uphunzitsi alembedwa ntchito tsono kudzela m’chumacho–kuthetsa m’nyozo!! OLEMEKEZEKA, BWANA GONDWE: Muli nao mwambi ndipo m’maudziwa umati,” CHISONI CHINAPHA NKHWALI,” N’theradi m’mene mwafotokoza kuti chuma chikwelako pang’ono, anzanu aluma lilime akonzeka kolapushoni,katangale: koma chisonicho dziko likubvutika: poti dziko ndi anthu ndiye amatukwana UTSOGOLERI: CHISONICHO!!!!

  18. DPP KKKKKKK NDIYOTSEKTSE MKHALAMBA ZOKHAZOKHA NDICHIFUKWA CHAKE ZIKUBA KWAMBILI MULUNGU NGATI MULIKO NKHALAMBA AZAZITENGE TATOPANAZO AGONDWE MWAKALAMBA KAPUMENI NGAT ZAVUTA INGOMWANI TAMEKI BASI ZATHEKA

    1. Ufulu wakulankhula kotereku ndiye ngophatikiza ndikupulukira. A Gondwewa ndi msinkhu wa Abambo kapena Agogo anu ndipo palibe chifukwa chomveka chimene chingakufikitseni ponyoza motere. Zinazi mudzangokumana ndi matsoka amene adzakupatseni phunziro lowawitsa m’moyo mwanu. Mutha kupitiriza kapena kusiyira pompa poti mutha kuti ndi ufulu wanu koma kumbukani kuti CHAUTA alibe zimenezo. Zikomo.

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