IMF declares Malawi on track: Finance Minister says economic rebound gets real

The International Monetary Fund (IMF) Wednesday declared Malawi as being on track as far as reclaiming the economy is concerned.

IMF Head of Mission Williams addressing a news confrence as Finance Minister Gondwe is accompanied by governmetn officials and central bank governor

Chief of Mission for IMF, Oral Williams disclosed this in Lilongwe during a press briefing on the end of mission for the ninth and final review of the Extended Credit Facility.

He said as far as the team is concerned Malawi has made tremendous strides in reclaiming its economy which was down.

Williams said, “Malawi’s economy was hit hard by the negative impacts of the drought, but the economic outlook is improving with better prospects of agricultural output including the maize harvest.

“Real Growth Domestic Product (GDP) growth after two consecutive years of drought fell below three per cent in 2016 but is expected to pick up in the range of four to five per cent in 2017 while the annual inflation has now fallen to 16.1 per cent as of February 2017.

“The consumption-lead recovery is expected to be driven mainly by a rebound in the agriculture, wholesale and retail and telecommunications sector.”

Additionally the IMF Chief commended the government of Malawi for the tight monetary policy which kept short term money market rates positive in real terms and stronger fiscal management.

“These short term money market rates were key to restoring confidence in the exchange rate which has remained stable. Committing the flexible exchange rate regime and automatic fuel pricing mechanism continued to help Malawi to respond to external shocks as evidenced by the foreign exchange reserve cover that stabilized at about three months of imports,” William said.

The Chief of Mission has since asked Malawi to spend within the available resources and avoid borrowing to maintain the state of the economy.

Minister of Finance, Economic Planning and Development Goodall Gondwe concurred with the IMF mission Chief saying the economy of the country has renounced and there is room for further improvements.

“Let me thank the people of Malawi for their patience during the time the country was faced with serious economic hardships. As government we will work to maintain the status of the economy by making decisions with patience and possible consultations,” he said.

 

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
Chalume
Guest

An economy fueled by rain-fed agriculture and trading is not one whose prospects of long-term growth are guaranteed. This is a normal fluctuation that is expected, and long-term growth is what we need to focus on. The IMF needs to know this too.

Omex70
Guest
‘Major Pen” or whatever you call yourself, don’t be emotional here and don’t show your ignorance here. If you think what the IMF has said will make people to trust DPP led government you are cheating yourself. Its you the DPP die-hards who are trusting your fellow DPP. If DPP was not full of thieves this could have been good news but we know for sure that with this news the thieves in government are ready to steal more and there will be literally nothing changing on the ground. It will be just a rhetoric speed that our economy is… Read more »
masa masina
Guest

Luck year because God gave us rain. The economy will improve because of good harvest dues to good rainfall. DPP are not rain makers.

gerald white watsopano
Guest
gerald white watsopano

GOOD WORK SHAME ON DEMONS WHO WISHING DPP BAD

gerald white watsopano
Guest
gerald white watsopano

I WAS LOST IS IT DPP OR ANOTHER THAT MAKES THIS PLEASE I THOUGHT THIS GUYZ ARE BUASY SYPHONE THE MALAWIAN TAX MMMM MAY CRITICISM IS GOOD . THANK MR MCP FOR HELP DPP TO GAIN TRUST IN IMF

Joseph Banda
Guest

CONGRATULATIONS TO ALL CONCERNED. I KNOW THIS HAS NOT PLEASED THE DEMONS.

Achimidzimidzi
Guest

But why is the IMF Head, dwelling too much on agriculture and fails to elaborate the good government fiscal policies
.
Is IMF employing agriculturists to give advice on money issues. Next time IMF should bring WFP representatives so that IMF will comment on fiscal policies while WFP comments on agriculture

Congratulations Mr Hon minister of Finance and your team. Well done!

benjones
Guest

Malawi land of false imagination.

Major pen
Guest

koma akanati Malawi fail test of IMF koma ma comment 1000, lero zabwino kuli ziiii, chomwe ndaona ndi jealous kuipa mtima, ufiti, ugalu, ubulutu, ugwape, etc. Mumafuna zinthu zoyipa Dziko lanu yet mukukhala komwekuno, mudzafa imfa yowawa because 2019 DPP is winning again. Do u think if we won from opposition, we can lose so easily?????????????????. Even whole central mukavotere chakwera Mudzaona ndondocha zikukavota. Musazinyenge if MCP win Ndiye Bola Tidzathamangemo muno

Central
Guest
Iwe nawenso usafulumire kusekelera, this as said by the delegation is just the first leg! The second and next/last leg is coming! Take my words, based on the recent scandals (the recent ……gates) and misuse of resources, you will hear these guys telling Malawians m’maso mwao muli gwaaaaaaaaaa that they can’t resume the credit facility up until Government significantly improves many of issues that have gone sour right now!! Before you start gleaning, you should be reading the abstract lines in between their statements…………….!! Sincerely, based on what you have said, I suggest you’ve never done a lot with these… Read more »
Mwikuha
Guest

How can the Tobiahs and Sanibalaths comment on something that is good for Malawi? Have you ever seen the devil giving credit to where it is due? Haven’t you heard remarks by the general Secretary of the CCAP Synod on the same?

wpDiscuz

More From Nyasatimes