Malawi’s economy has moved from “rescue to recovery” based on a number of economic indicators, according to the central bank.
The Reserve Bank of Malawi (RBM) deputy governor (economics) Naomi Ngwira said in a Capital Radio programme, Economic Perspective on Sunday, the gross domestic product (GDP) is expected to jump, foreign exchange reserves have picked up, private sector capacity utilisation has markedly improved and foreign currency arrears settled.
“We will certainly be producing more this year,” said Ngwira who accompanied by RBM’s manager for research and policy analysis, Kisu Simwaka.
Simwaka said GDP is expected to peak at five percent this year from a tepid 1.9 percent in 2012, foreign exchange reserves are now at 2.6 months of import cover from only two weeks in May 2012, private sector capacity utilisation is now at between 65 percent and 70 percent, and that most of the companies have re-established their credit lines.
He also said inflation, which eased to 27.9 percent in June from 31 percent the month before, has been on the downward spiral thanks to the availability of maize, which, as part of food, accounts for about 50.2 percent in the Consumer Price Index (CPI)—a measure that examines the weighted average prices of consumer goods and services.