IMF gives Mutharika good rating on Malawi economic performance: Outlook favourable
The International Monetary Fund (IMF) has given a positive economic outlook for Malawi after conducting discussions with the Malawi Government on the second review of the three year arrangement under the Extended Credit Facility (ECF) amounting to US$112.3 million.
IMF Mission Chief for Malawi, Pritha Mitra told journalists at Capital Hill in Lilongwe that Malawi’s performance under the program has been good in spite of Malawi missing end December fiscal target balance which it attributed to front loading of budgeted expenditures and increases in spending to hold elections.
She further urged the government to focus on actions to ensure fiscal sustainability with particular focus on debt management and public financial management including undertaking regular bank reconciliations among others.
“These are all critical to overall improve the efficiency of how public finances are run and to achieve one of the objectives under the IMF program which is to gradually reduce the debt to GDP ratios.
“One way of reducing the debt is improving revenues and spending that really enhances growth. Those two strategies together would result in low budget deficit and gradually over time the deficits will be reduced and probably even have surpluses,” she said.
According to IMF figures, Malawi’s economic growth is projected to reach 5 percent in 2019 due to a rebound in agriculture and some improvement in electricity generation while inflation is expected to drop to around 8 percent at the end of 2019 and to 5 percent in the medium term.
However, Minister of Finance Goodall Gondwe said the government has decided not to complete the discussions because it will inject further expenditure into the budget to carter for the crisis in Lower Shire, but was optimistic that the government would complete the discussions under the ECF.
“We are doing quite well. We started very badly in 2014. We have managed to clean up all the disaster that befell us because of cash-gate. I think that is behind us now as far as figures are concerned. If we had not had bad climatic episodes, we would even have done better,” said Gondwe.
The ECF provides financial assistance to countries with stretched balance of payments problems created under the Poverty Reduction and Growth Trust.
The discussions under the second review will continue in the weeks ahead including at the IMF’s Spring Meetings from April 12 to 14 in Washington D.C. according to the IMF team.
The IMF team has been in Malawi since March 5, 2019.
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Pritha Mitra your contradictory messages you’ve given seals the perception that you and your organization are there to maintain countries’ dependency and poverty!! Sincerely out of the two messages you’ve given which message should we believe?
Yesterday you said Malawi is at growing risk of debt distress because of heavy borrowing, and advised APM and his government to keep borrowing to a minimum and only procure loans that are concessional. By saying Malawi is at “growing risk of debt and distress” it means things economically are not right. Yesterday after you said the above professor Ben Kaluwa from the University of Malawi’s Chancellor College, economics department agreed with you and observed that government authorities need to look beyond economic stability you’re praising today and start focusing on: taming rising inequality, growing poverty and population because as at now Malawi’s poverty levels remain widespread at 51.5 percent nationwide as at 2017, up from 50.4 percent in 2010, according to the African Development Bank (AfDB).
Should we assume you were merely joking when you said that the situation Malawi is going through could hinder efforts of improving the well-being of the people and aggravate poverty.
Economically if people are suffering what is it that IMF is seeing as good? Is suffering of Malawian good for your organization? Pritha if you’ve nothing to do, please do not waste our time and or confuse us!! Mitra you can go to hell with your confusing economics!!
if APM with his DPP can praise from IMF them if MCP with Chakwera super Hi5 comes in they will be worshipped by IMF
Thanks IMF vuto a Malawi ndi ma figures ai sizigwilizana….
This is exactly what Micheal Usi was saying last night. Akunja amati economy ikuchita bwino m’Malawi muno koma ife eniache amalawi tikuvutika. Mwachitsanzo, ndinanva chisoni kuona gogo wina ku Blantyre yemwe kachisakasa kake kagwa ndi mvula uja. Abale!! Ngati gogo wamtown ngati amene uja akuvutika chonchija, kuli ena angati kumidziku?
Mchacha, you are showing ignorance. IMF is talking about the MACRO-economy (inflation, currency, economic growth etc). Unless these things are strong you cannot even begin to think about reducing poverty.
I am not an economist so i don’t know about your MACRO,INFLATION, CURRENCY CHANI CHANI UKO!!. What i know and have proof of is that we(ME & MY FAMILY & FRIENDS) as Malawians are suffering heavily. Suffering=poor economy to me cos all the indicators of economy that i know are not working for me as a Malawian. You and your wisdom of economy i’m sure you are part of the few top people in this country who are enjoying your economy
Mbuli ndinu man…………………! Iweyo nde waonetsa kuti sumazitsataaaaaaaaaaa za economicszi! Is what this woman said before this message against this one adding up? Kodi m’mwenyeyu mwamupatsa chani kuti azingosintha ma statements! Nde timve ziti popeza zonse zotsutsana zachokela kwa iyeyu……………
Positive developments for Malawi led by APM. These are gurus who have won donor confidence and we need them for economic developments of the country. DDP ndi deal
This is not a fair rating madam Pritha we Malawians are suffering in all sectors including health,education,transport and agriculture please if you want to borrow us more money so that we should continue to suffer just say it.Cant have mecy our country debt has reached 3.3 Trilion and here you are with another offer to lender money Please please madam Pritha go and tell your masters one day a new Malawian president will come and put to an end to all this no sense
Mbuzi iwe, IMF sima dokotala, saona health; si aziphunzitsi kuti aziona ma sukulu. IMF ndi ma economists. Amawona inflation, if the price of goods are stable e.g a bag of maize, suger and bread (cost of food basket). Amaona exchange rate if it is stable. Amaona interest rate if it is dropping. Amaona import cover if it is increasing. UDAPITA SUKULU YAKE YAKUTI IWE? Ya u sing’a wadzitsamba kapena?
kkkkkkkkkk Heavyduty go easy on this boy.
Somehow someway someone will still find something negative to say. Lol
Mbuzi izi inu, tazisiyani. And this is no surprise, even in days of Jesus, some people refused to accept him (as the Messiah) despite clear and visible signs. If exchange rate has I been stable at $1 to MK750 for five years; if interest rates has dropped from 44% to around 24% and still going down; if inflation is down to 9% from around 25%; if import cover is up from 2 weeks to around 5.5 months; if fuel remain stable at an average of MK880 per liter for five years nde wina nkumati nkumati IMF yawona chani? Aaaaaah, honestly these are idiots ndithu.
IMF is bank whose interest is to fool Malawi into borrowing more from them. These guys don’t care about their clients at all and they are the largely the reason why we are so poor as a country
what are we to believe because there is a headline also which says ” Malawi at risk of economy crippling debt, IMF warns”. these guys are up to nothing good for our country.
The case of IMF to Malawi is a shame. Malawi is the 2nd poorest country in the world. IMF has the audacity to even grade this country. Help provide solutions first to get out of this poverty to prosperity. We need leadership that will mitigate the economic factors to transform this natural resource rich country and challenge its inhabitants of the many opportunities that exist to better itself. Malawi is not a hopeless situation. But this deplorable state of affairs is not fooling anyone. Quit fooling us with the debt to GDP ratio, the only factors IMF is interested in at the expense of the livelihood of Malawians.
Anzanu oganiza akuchita bwino mdziko lomweli la hopeless…vuto ndi one dimension thinking basi….
Thanks Goodall Gondwe for your wisdom. Our economy is on the right track.
Great Goodal Gondwe you know how to play with figures to fool IMF.
Boma ilo
I don’t trust these guys. This is a mere political rhetoric to palm oil the leadership in order to seek economic refuge. How can they say this when a while ago the same institution has criticized Malawi for heavy borrowing that it said it will affect the economy of the country. We know these guys are diplomats and there is no better way they can sound diplomatic than this.