After inheriting a ‘tattered and bankrupt economy’ Mutharika ecstatic with IMF 7% growth forecast for Malawi

President Peter Mutharika has said that he is pleased that after he inherited a “tattered and bankrupt economy” from his predecessor, Joyce Banda,  he has  managed to reverse many of the economic woes and is setting Malawi  on a path of sustainable growth with new predictions by the International Monetary Fund (IMF) signalling further positive outlook and robust trends in the economy.

Mutharika greeting people who welcomed him at the airport

Mutharika said in his brief address to journalists at Kamuzu International Airport   when he arrived  home from the United States of America (USA)  that he has presided over  a  significant economic transformation which the country has seen in his four-year reign.

When Mutharika came to power in 2014, he inherited a country mired in the Cashgate corruption scandal, rising inflation, and the withdrawal donor funding, which left a 40 percent gap in the country’s budget.

At that time, growth stagnated at 2.4%, inflation was at 24% and the local currency was volatile with businesses struggling with insufficient forex import cover.

A year into government, Malawi suffered floods and famine. This was followed by a severe drought in the second year of the administration.

These factors regardless, Mutharika has streered the economy out of the doldrums, making it one of the best performing in Southern Africa in 2017.

“Within four troubled years, we have reduced inflation from 24 per cent to a single digit. We have reduced interest rates from 25 percent to 16 percent. We have taken our import cover from the lowest point to the highest point in our economic history. Our import cover has risen from below two months to six months. We have made local currency stable and predictable,” he said.

The IMF has also  predicted that Malawi’s inflation shall remain in the single digit in 2018 and further projected  inflation to fall down to 5 percent in the medium term, which will be the lowest  fall ever.

In addition, the IMF has predicted economic growth to go up to 7 percent. This will keep Malawi’s economy as one of the top performing economies in Southern Africa.

The IMF authoritative predictions means Malawi’s economy is firmly studded to be one of the fastest growing economies few years after the Mutharika government salvaged it from a crisis.

The swift recovery of the economy have made others to describe Malawi’s economy as ‘a miracle’.

In a statement released after a week-long assessment of the economy, the IMF Mission for Malawi notes the positive strides in the economy.

“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,” reads.the statement by the IMF led by Pritha Mitra.

The IMF further acknowledges Malawi’s positive performance in its program, to the extent of “significantly overperforming” in some sectors.

“Performance under the program has been good. Most quantitative performance criteria (QPC) for end-June were met, with the criteria on international reserves and the Reserve Bank of Malawi’s holdings of government securities significantly overperforming,” observes the IMF.

The Bretton Woods institution also hails the Government’s monetary policy management measures to keep inflation down and efforts aimed at ensuring that prices of commodities remain stable.

“The RBM’s (Reserve Bank of Malawi) vigilance and adoption of new regulatory measures has resulted in a significant reduction of non-performing loans and increased provisioning,” it says.

This means there is now reduction in default in loans such that lending institutions are now able to cut on sums they would need to set aside to deal with loan default losses.

The assessment by IMF  is a positive rating to President  Mutharika’s economic management measures.

IMF has consistently given Malawi a positive rating since 2016.

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If there is a minister who is daft in this stupid
Guest
If there is a minister who is daft in this stupid

Stupid !!!!!.Which economy is growing ?That is what I call textbook and boardroom economics.

Napoleon Muza
Guest

Prof. Peter Arthur Mutharika is a man with a mission. We may not dislike him, but he is a man who has focus and great vision for Malawi. Another five years are on your way. Whether the devil likes it or not, you have another five years. Let people talk it is their freedom. You are the best driver, osati zinazi ziti anti corruption head position should be open to foreigners, za ziii. What is needed is mindset change. If Malawians will not turns away from their corruption tendacy nothing will change. Bravo APM

Tsamba Likagwa
Guest
Tsamba Likagwa

Congratulations APM!!. Better days are coming. Nanji akangotenga bomanso mu May 2019. Ndiye kukhala nyande ya chitukuko. The real professor, the real transformation.

Chilungamo
Guest
Chilungamo

But who caused the tattered economy? JB was in power for barely 2yrs. Before then it’s an open secret that even packet ya sugar imasowa, anthu amagona in filling stations for fuel, business zinayima chifukwa chosowa forex, Malawi almost became a failed state like Zimbabwe,
People do not eat statistics, just recently tariffs for electricity, water and fuel all have gone up. So this grandiosity, self-praises and bragging does not help anyone. For how long will Malawians hear of such cosmetic stats without its benefits translating and trickling down to a common man.

Che Munyekura
Guest
Che Munyekura

It was at 6.2% (actual) in 2014 when DPP took over. It took a nose dive thereafter and has never reached that high level since then. So, truth be told that it wasn’t tattered back then. And if they argue that 4 years wasnt enough to bring about the change they want then they should look at the trend from 2012 – it was below 2% when PP took over and the next year it jumped to over 5%. So, these clueless DPP shouldn’t feed us nonsense .

chikoti
Guest
chikoti

Good news to us all..zimatenga nthawi kut ma benefits amenewa afike kwa munthu WA Ku mudzi.choncho pakufunika kudekha otherwise zinthu ziskonekera phuna la enanu likapitilira.. Zinthu zili pa mlingo wabino oti kukula kwa chuma kulipo so don’t uproot zomwe tadzala kale.tibwereranso konkuja.dekhani a Malawi..

Mchacha the Terrorist
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Mchacha the Terrorist

@ chikoti Typical of shallow minds and party sycophants : There is nothing new that Mutharika is saying here: 1: Dr Kamuzu Banda used the same language or simply put sung the same song. Did that poor man and woman in the village live a better life? No. He/she still lived in dehumanizing poverty 2: Bakili Muluzi used the same language or simply put sung the same song. Did that poor man and woman in the village live a better life? No. He/she still lived in dehumanizing poverty 2: Dr. Bingu wa Mutharika used the same language or simply put… Read more »

nyoko
Guest
nyoko

Better than this typist .People are able small change,Banks should stop taking citizens property when the
government knows that economically it failled

#DzukaniAmalawi
Guest
#DzukaniAmalawi

The 7% economic growth projection will only make a difference to only the top 5% f Malawi populations, if at all. Malawi economy is one the worst unequal economy in the world. Anthu akuvutika bwana kunjaku. These stats you’re freely sharing don’t mean a thing to the suffering 18m people.

Angoni apaphata
Guest
Angoni apaphata

If this is true then Mr. Maliseche tiwayamikire jelasi down. In this case i think the inly thing he needs to do is get rid of bad company. Munthuyu ndi wabwino bwino uyu. Congratulations sir even though i dont like your dpp because of the thieves and corrupt people. Imagine how it would be then chipanda kuba?

Mchacha the Terrorist
Guest
Mchacha the Terrorist

@ Angoni Anaphata

Wabwino mutharika??. How do you define munthu wabwino in the first place and how do you define a good politicians ?. What measures and variables do you use? Tazingowasapotani a president anuwo mbuyache without posting sweeping statements which will only attract reaction from analysists and when those analysts put your statements in perspective and under scrutiny mumati a kunyoza.

MAWA2
Guest
MAWA2

inu mukuyenera kukhala mtsogoleri olephera, ongoona zoyipa zokha zabwino ayi

Mchacha the Terrorist
Guest
Mchacha the Terrorist

@ Mawa2 Well, I do not get excited about things for the sake of it. I take a serious and an analytical view of issues and put them in perspective to generate a rich understanding of the same . Refer to my comment under your fellow cadet chikoti. There ought to be a difference between a cadet or a party sycophant and an analyst or scholar or a sober minded person in the manner they process information, understand issues and look at issues. Seriously how many times have the people of malawi been told that the economy is doing miracles… Read more »

patrick chisale
Guest
patrick chisale

ndagwilizana nanu

Raws
Guest
Raws

Boma ilo!

FIFA
Guest
FIFA

ENAWA ASIYENI YAWO NDI YOMWE IJA YOBWEBWETA YOLALATA, NDALE SAADYA AYI ATCHEYA ADANENA KALE ASIYENI AZICHITA NDALE ZAO ZACHIPONGWEZO , MUSAWABWEZERE BWANA MUZINGIGWIRA NTCHITO YANU BASI ANGAKUCHEDWETSENI CONGRANTS APM DOCTOR OF HUMAN LETTERS NGWAZI PA ZA CHUMA BRAVO BWANA APM
I AND MY FAMILY WE ARE KEEPING YOUR VOTES

patrick chisale
Guest
patrick chisale

2019 APM boma

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