Alliance Capital predicts 4% economy growth
Investment and advisory firm Alliance Capital Limited has said the economy will grow by four percent on account of normalisation of rainfall patterns, prudent fiscal expenditure and a less volatile exchange rate.
This is, however, in contrast to government’s six percent projection.
In its financial statement for the period ending December 2016, Alliance Capital sees a boost in consumption and a decline in inflation, factors it says will help to boost business confidence and elevate investor and donor confidence.
“Since 85 percent of the population work in the agricultural sector, we expect private consumption to boost consumption aggregate demand. Inflation is expected to decline in 2017 on the back of improved food supply, a slowly depreciating currency and tight monetary policy,” reads the statement in part.
In a recent interview, Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe said Malawi’s economy will have to grow by over six percent in real gross domestic product (GDP) terms, if the country is to meaningfully reduce poverty levels.
To attain this, Kabambe said the central bank would, among other things, ensure effective management of the monetary side of the economy in tandem with stipulated fiscal policies to auger well.
He said he looks forward to having a stable kwacha—“without any volatility at all”.
Alliance Capital has since registered a pre-tax profit of K157.2 million—up from K147.9 million attained the previous year—representing a six percent growth on account of growth in funds.
