Saturday, May 21, 2022
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Goodall schools Malawi on macroeconomic stability

by Staff Writer
12/11/2012
in Business News
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Malawi’s former finance Minister Goodall Gondwe has tipped the Joyce Banda administration on how to attain macroeconomic stability and, consequently, fully recover the ailing economy.

Gondwe, who is highly accredited for maintaining low and stable macroeconomic indicators during late president Bingu wa Mutharika regime, thinks that anchoring adequate foreign exchange reserves, slowing down inflation rate and achieving an equilibrium exchange rate are key for the domestic economy to experience macroeconomic stability.

The former International Monetary Fund (IMF) official offered the advice at Nkopola Lodge in Mangochi during the 2012 annual Economics Association of Malawi (Ecama) annual conference, where he was one of the key discussants.

“We hope we will rest at a stable exchange rate and, therefore, once that macroeconomic stability is achieved, you have reached a conducive economic environment,” said Gondwe.

His tip comes when the Malawi economy continues to be pinched by a double-digit headline inflation rate, high cost of borrowing, a dramatic depreciation of the kwacha and a projected slowdown in economic activity which many believe is a consequence of recently implemented economic reforms by the ruling administration.

The land-locked agro-based economy, has seen the price of one dollar to kwacha swiftly tumbling from K167 mid-May to around K320, as of last week, with headline inflation rate settling to a record high of 28.3 percent as of September, a rate which is one of the highest in southern Africa.

Such a dent in the economy’s macroeconomic atmosphere has since prompted government to launch an Economic Recovery Plan (ERP) which has outlined immediate, short-term and medium-term policy reforms aimed at cooling down key macroeconomic indicators.

Gondwe told the gathering of economists, diplomats, bankers and other policy makers that the effective implementation of twin-policies of fiscal and monetary policies will be key for Malawi to achieve macroeconomic stability.

Commenting on the fiscal policy side, he observed that at the moment, there are too many players or ministries that seem to be implementing the fiscal policy, something, he said, distorts effective implementation of the policy.

Gondwe said over the years the Ministry of Finance has had challenges in executing its supervisory role over other sectoral ministries which has compromised the implementation of the fiscal policy.

 

Previous Post

Shoprite to buy produce from Malawi farmers

Next Post

MSE closes in the red

Related Posts

Gwengwe: Closing the gap requires two things
Business News

World Bank sees widened fiscal deficit

May 21, 2022
Malga wants central government to share revenue from this facility with the respective council
Business News

RFA, Malga disagree on toll gates revenue

May 21, 2022
A consumer loading prepaid electricity credit whose 
tariffs have been revised
Business News

Cama wants electricity tariffs reduced

May 21, 2022
Next Post
The Nation Online MSE closes in the red

MSE closes in the red

Opinions and Columns

Layman's Reflection

New IMF programme pivotal moment for Tonse Alliance

May 21, 2022
Family Table Talk

Historical lessons on the value of forgetting

May 21, 2022
My Diary

Politics of ‘kutola chikwama’

May 21, 2022
Bottom Up

Ukraine war: Sanctions backfire?

May 21, 2022

Trending Stories

  • CAF accepts FAM’s request on Flames fixture shift

    0 shares
    Share 0 Tweet 0
  • UN bets K66bn on LMC’s plan

    0 shares
    Share 0 Tweet 0
  • Laboratory scientists give government 14 day ultimatum

    0 shares
    Share 0 Tweet 0
  • No quick fixes to forex scarcity

    0 shares
    Share 0 Tweet 0
  • Onesimus leaves Major One Records

    0 shares
    Share 0 Tweet 0

Malawi-Music.com Top10

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.