Government officials say the economy is going to pick up soon with food prices expected to fall as some farmers are now harvesting maize.
Ministry of Finance spokesperson Nations Msowoya said coupled with the sound economic policies that the Peter Mutharika administration has now put in place following the turbulence the economy faced.
“As you can see, the inflation is falling. The inflation has last month fallen from 23.5 percent to 23.4 per cent. This is as a result of food availability,” Msowoya said in recent radio interview.
He said the inflation will continue to fall so too interests rates with help macroeconomic policies the government has now put in place.
Among others, the government says it has drastically reduced borrowing and surprised many when it reduced the national budget saying it wanted to spend within its limits.
Currently, donors—who withdrew their 40 percent contribution to the recurrent budget in November 2013 amid concerns of Cashgate, the plunder of public funds at Capital Hill—have not yet unlocked their budget support to Malawi and have opted to finance the budget through off-budget support.
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