Goodall tells Bloomberg ‘Malawi economy understated by 40%’

Malawi  Finance Minister Goodall Gondwe has said the country’s economy may be understated by as much as 40 percent .

Gondwe told Bloomberg TV Africa in Washington on Oct. 11 that “the methodology that we are using to calculate gross domestic product has got to be looked .”

Gondwe:  Finance Minister says  Malawi to have higher GDP

Gondwe: Finance Minister says Malawi to have higher GDP

The 78 –year-old former World Bank official said: “I’m sure that once we review that, we’ll have a higher figure.”

Malawi’s economy is worth $3.71 billion, according to World Bank estimates.

The southern African nation’s economy will probably expand an average of 7.5 percent annually over the next five years, Gondwe said.

The International Monetary Fund is estimating growth of 5 percent to 6 percent this year.

“We are now about 6 percent, even with the problems that we have now,”  Gondwe said. “We think that once we have ironed out and normalized the problems here, we should be able to come up to about 7.5% or more.”

The IMF and other donors froze aid to Malawi last year in the wake of reports that almost a third of state funds were being lost through corruption. Malawi relies on donor funds to finance about 40 percent of its budget.

While Malawi’s dependence on foreign aid has eased, the country needs to restore fiscal discipline to lure donors and investors, Gondwe said.

“We need a lot of money,” he said. “Probably we need close to about $100 million or so, but more importantly we need a considerable amount of money for development projects in the country.”

Gondwe, who was finance minister between 2004 and 2009, was appointed to his current position in June after Peter Mutharika was elected president in a contested election.

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22 thoughts on “Goodall tells Bloomberg ‘Malawi economy understated by 40%’”

  1. Chilungamo Chimawawa says:

    za uidiot basi za ziiiiiiiiiiiiii. which economy is he referring to???? day dreaming at its best kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

  2. Kanyimbi says:

    I salute you Goodal. You know what these IMF do. Liberate us please.

  3. Quota system says:

    Text book economics. Tcheya used to say, “Tikamati chuma cha dziko chikuyenda bwino, ndiye kuti anthu azikhala ndi makobili mu ma tumba mwawo, mitengo ya zinthu izikhala yokhazikika osati kumangobalansa ma book ku capital hill”.

    1. johnM says:

      Atcheya was a fool and he is still a fool. I can’t believe that there are people that idolize him.

  4. matako says:

    Nonsense! I hope these institutions do realize that as far as the politicians are concerned in this country its (corruption)business as usual. I do hope they do not extend any credit facility to this corrupt government. Let APM bring back the $millions in foreign banks which his brother stole from he treasury. Let him explain where the MK92 Billion disappeared to. As far we are in this country we will continue to be vigilante and expose any corruption taking place. We urge all the donors to demand an explanation do not waste your tax payers resources. Assisting this country directly will only enhance the corruption syndicate championed by the current administration.

  5. KAGUSHU says:

    mwayambatu a Goodall Gondwe musatinamize apa. last time mumanamanso ma inflation rates inu

  6. Mesho says:

    Nonsense. Nowadays everybody is getting tinted spectacles so that their economy is given good adjectives and descriptions or ratings. Nigeria did it to claim the number spot in Africa, Kenya did that also, it is just like fashion. The fact is that a pig does not become green because you are putting green tinted spectacles.

  7. Nyapapi says:

    Ma rubbish!

    1. JJB says:

      If what has been writen is beyond your capabilities, it does not make it rubbish.

  8. Wishing the government all the best!

  9. Wishing the government all the best

  10. Nabetha says:

    And please leave Nyasa Times alone. I have noted that for the past two days DPP is deliberately messing up with this much visited website. Hope this will not happen again. Tamvana kodi a Dausi?

    1. Kanthu Ako! says:

      Running Nyasa Times is not free, if they do not pay the host it gets pulled down just the same way your electricity gets cut off if you do not pay.

      Don’t blame things on people who have nothing to do with it.

  11. Nyangwani says:

    It’s not necessary to mention his age all the time.

  12. GONANI says:

    What the fuck happened to this website in the past two days? it almost gave me a heart attack!

  13. Civil Servants get up to 80% salary increase according to a new circular.

  14. chatonda says:

    Please do your job Goodall. You are the most suitable person for that position and we trust Malawi’s loans will be erased again as you managed to do last time. You have our trust.

  15. BigMan says:

    It was an election, of course it had to be “contested”

  16. Hello! says:

    Please do not manipulate the figures to give people a false picture about the economy. By the way, what indicators do you use to determine that the Malawian econmy is growing? We need to know these so that we are able to follow closely what you mean by an economic growth of 7.5%.

    1. Wakukaya says:

      If you do not know the indicators used then please do not show your ignorance here. The indicators are not used by ministry of Finance, if that is what you are thinking.

  17. tsamba says:

    It is only DPP that can take this country higher. osati azungu andituma

    1. Daniel Phiri says:

      “Azungu anditumawo” rescued this country from the abyss that DPP was recklessly taking us into back in 2012. I for one am grateful that because of her we are still using the Malawi Kwacha – otherwise we would now be using US$, Pound Sterling, ZAR Rands, Botswana Pula, and who knows what else (as is happening in a neighbouring country whose leadership Bingu admired so much).

      To emphasise that JB’s policies were sound, the current DPP regime has not been able to ditch her fuel and forex pricing mechanisms; despite campaign promises to ditch them. They have been forced to continue with them because they work!

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