Minister of Finance, Economic Planning and Development Goodall Gondwe says he is optimistic that the International Monetary Fund (IMF) assessment of the country’s economic performance expected this week will be positive.
Speaking in an interview on Friday, Gondwe said, among others, the drop in the country’s inflation rate from 23 percent to 16 percent as announced by the National Statistical Office is an indication the economy is on the right track.
He said the IMF team has been in the country for almost two weeks and he is expecting them to announce the results on the review of Malawi’s economic performance.
Said Gondwe: “The country’s economic outlook continues to look good and I am very optimistic about the outcome this time around.”
During previous assessments of the Extended Credit Facility (ECF), the IMF twice extended the programme pending improvements in a number of areas, including sustained public finance management reforms to restore trust and confidence in the budget.
Reacting to the development, opposition People’s Party (PP) spokesperson on finance in Parliament, Ralph Jooma, said it was pleasing to note that inflation rate has dropped.
He said: “Qualification for next IMF programme is, therefore, more probable and also highly anticipated.”
Some economic commentators have argued that uncertainties make the country’s economy vulnerable to exogenous shocks.