Malawi economy on track–IMF
The International Monetary Fund (IMF) mission to Malawi has said the country’s general economic performance is on track and the country can do much better if government can improve debt and public financial management as well as restore budget balance to correct last year’s spending overruns, among other suggestions.
The IMF mission which has been in the country for the past week said this in Lilongwe yesterday at a joint press briefing with the Minister of Finance, Economic Planning and Development Goodall Gondwe.
The team led by Pritha Mitra, the Mission Chief to Malawi, was in the country from September 25 to conduct discussions on the first review of a $112.3 million three-year programme for Malawi under the Extended Credit Facility (ECF)
“Malawi’s economy continues to grow while inflation remains on a declining trend. Moderate economic growth is likely to strengthen to about 4 percent in 2019, followed by a rise to 6-7 percent over the medium term.
“Growth will be backed by improved electricity generation, better irrigation infrastructure and cropping techniques, greater access to finance, and an improved business climate. Inflation is expected to reach 9.5 percent at end of 2018 before gradually converging to around five percent over the medium-term,” said Mitra in a statement released at the end of the mission.
At a press briefing, she maintained that while the country is facing challenges including power outages and high level internal debt, the government is implementing appropriate fiscal policies.
She said a number of set targets have been met by end of June this year which include an improvement in international reserves and the Reserve Bank of Malawi’s holding of government securities. –Read more about this and other stories tomorrow in Weekend Nation.
