Malawi economy to grow by up to 5% – IMF

Feb 15, 2018 Business 60
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Gondwe

The International Monetary Fund (IMF) says Malawi’s economy will grow by up to 5 percent in 2018.

IMF Mission Chief for Malawi Pritha Mitra said on Wednesday that economic growth of 3 to 5 percent is expected in 2018, followed by a rise to 6-7 percent over the medium term as the country continues to recover from two years of drought.

Gondwe
Gondwe (L) and Mitra at a news conference.

“Growth will be supported by enhanced infrastructure investment and social services as well as an improved business environment, which will boost confidence and unlock the economy’s potential for higher, more broad-based, and resilient growth and employment,” said Mitra.An IMF team led by Mitra visited Malawi from January 31-February 14, 2018 to conduct the 2018 Article IV Consultation and hold discussions with the Malawian authorities on a program supported by the IMF’s Extended Credit Facility (ECF) arrangement.

The team met with Minister of Finance Goodall Gondwe, Governor of the Reserve Bank of Malawi (RBM) Dalitso Kabambe and other senior government.

In a statement on Wednesday, Mitra noted that Malawi has failed to control its budget during the 2017/18 financial year as revenue shortfalls and expenditure overruns, including the bailout of maize purchase loans by Admarc, exerted significant pressures on the budget.

Mitra also expressed concern over Malawi’s rising debts and warned that for Malawi’s risk of debt distress to remain moderate, government should among other things rigorously prioritise the pipeline of projects based on such considerations as credible cost-benefit analyses.

She however said that government will deploy strong remedial measures to address the widening of the budget deficit in the current fiscal year and shift to a slightly positive primary balance in the next fiscal year.

“They are committed to irrevocably close out the arrears clearance program. The government will continue enhancing transparency in the budget process, strengthening the medium-term budgetary framework and cash management, and routinizing bank reconciliation.

“Monetary policy will focus on entrenching disinflation. It will aim to contain the inflation rate within single digits by end-2018 while keeping real interest rates positive,” she said.
The staff-level agreement and 2018 Article IV could be considered by the IMF Executive Board in April 2018.

During a joint news conference with Mitra, Minister of Finance, Economic Planning and Development Goodall Gondwe said Malawi’s deficit is projected at K183 billion against the earlier forecast of K195 billion.

He added that government has revised the development budget and would now only prioritise about 25 projects that will be completed by June this year, including those wholly funded by donors.

The staff-level agreement and 2018 Article IV could be considered by the IMF Executive Board in April 2018.

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60 Comments

  1. Whether it’ll grow or remain stagnant or won’t grow, nothing on poor people will ever change. Those who are rich will have a solace of their wealth. The poor will continue gnashing their teeth. Pa Malawi pano!

  2. Zonse zimakhala chodzimodzi ikwere itsike katundu kukwera malipiro ochepa anzathu kunja zinthu nzotsika kwambiri poyerekeza ndi kuno kwathu pangani zinthu zoti zikomere anthu onse azimva kukoma

  3. Too small to make a dent on poverty….nothing to celebrate here…what happened to the much touted 7%?

  7. IMF is an imperialist organisation under the USA and its allies to destroy national institutions of developing countries

  8. How many times have the IMF,W bank says all the postive stupid things and nothing has changed for an ordinary malawian,when things will start to change for good in malawi,we wont need the IMF to tell us about our econimic growth,,thy will be improved medical conditions,improved standards of education,,farmers will get the friuts of their labour not the peanuts thy get every season,,,dont try to explain things as if all malawians will understand by % in growth,,show the growth in actions,,,…

  11. will that translate into change in standard of living for malawians? Or what impact will that growth have on the rural people ‘s economic needs

  12. What will drive this growth? Enlighten us to see where Malawi’s hope is so that we focus our energies on the relevant sectors!!!

    1. Was refused departure to Botswana by South Africa Govt due to passport pic. Malawi Consulate here in Johannesburg is just dead.. Thanks to South Africa Human Rights Commission for their support… We are just a dead nation indeed. All kind of communication to our Consul here are out of reach…

    3. Yes. Each time I plan of coming home, another program comes in. I’m done with Osisa, and now I’m with South Africa Human Rights Commission up to next week Monday. After that is when will be coming home.

  16. Someone says its too small koma akanati igwa ndi 5% pitala akanatukwanidwa osati masewela but we should remember a piece of bread is better than none

  17. Or even if it can grow 100% the fact remains that this government is failure which is full of corruption in a country where there is high unemployment rate

  22. Kodi munthu wonena kuti ndikadzatenga boma ndidzapanga izi ,ameyo sali m’ boma ,ndizakutsogolo osati lero ndiye apa akuti will grow but not today tibakukutabe mano natidikira kuti future tense ikhale present tense liti ???????????????????

  26. How? ,,,in what way? ,,,IMF,,,?only European countries their got strong currency,,,,racist organization,,,,

    1. IMF ndi bungwe osati munthu okhala ku state house, ndmaziwa zoti school inakuvutani koma ndmomwe moyo umakhalira

    2. unyolo iweyo ndamene xul inakulaka bungwe amayendetsa ndani? mwinaso ukhoza kulakwa apa kkkkk IMF ikunama after atabwaliwo atadyetsedwa ma bin laden……do u know GDP n all its elements xul me if u can

  30. za dziko lapans! IMF yanena kut economy yathu ikwela ndi 5%. sizopweka guyz madolo amenewa kuyamikila malaw. telling u!!

    2. no no not that! aba inde koma amaba mwanzelu! amwene go 2 usa,euro,asia.. ziphuphu basi! koma manje mabedwe!

    5. jere teling u o chakwela afunidwayo atati ali pampando lero timvanso kuwawa kuposa wina aliye adakhalapo tsogoleri dzko muno

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