IMF First Deputy MD Gita Gopinath commends Malawi’s efforts to restore macroeconomic stability

International Monetary Fund (IMF) First Deputy Managing Director, Gita Gopinath, has commended the efforts President Dr Lazarus McCarthy Chakwera and his administration have put in place to restore macroeconomic stability, which will set the stage for stronger durable growth and poverty reduction.

In a statement issued at the Conclusion of Her Visit to the Republic of Malawi, Gopinath highlighted efforts under the Staff-Monitored Program with Executive Board Involvement (PMB), which the Government of Malawi has undertaken to correct the misinformation and misreporting the Democratic Progressive Party (DPP) made to IMF.

The misreporting has had negative impact on the Malawi following the decision by IMF and World Bank to cut direct aid to Malawi.

But Gopinath thanked President Chakwera, as well as the Minister of Finance and Economic Affairs, Mr. Sosten Gwengwe, and the Governor of the Reserve Bank, Dr. Wilson Banda for the productive exchange of views and warm hospitality.

“We discussed the economic and developmental prospects for Malawi. Macroeconomic adjustment and reforms are gaining traction and it would be important to maintain the momentum in the period ahead,” she said.

“We also discussed the policies that would be necessary to solidify the country’s hard-won gains. Securing a debt treatment would be vital for macroeconomic stability and ensure that additional financing could be used to address Malawi’s pressing developmental challenges. Moreover, strengthening fiscal discipline and addressing weaknesses in governance remain essential.”

Gopinath described the close engagement between Malawi’s economic team and IMF staff in the context of the second review of the PMB as welcome, as is the authorities’ request for an arrangement under the Extended Credit Facility.

She assured that IMF staff and management will continue to offer their strong support to the authorities’ efforts to stabilize the economy.