Malawi to emerge out of world poorest countries group -Finance Minister

Malawi government is “determined”  to steer  the country out of a group of poorest countries in the world within the medium term, Minister of Finance, Economic Planning and Development Goodall Gondwe has said .

Goodall Gondwe: Budget revised 

Gondwe said in Parliament on Friday when he presented a mid-term budget statement.

He attached weight to The International Monetary Fund (IMF) statement last Wednesday that they expect the economy to grow between 3 and 5 percent in 2018 and by as much as 7 percent in the medium term as the country recovers from drought-induced stagnation.

The international lender said in a statement at the end of a country mission that included meetings to discuss the extension of a multi-million dollar loan that: “Growth will be supported by enhanced infrastructure investment and social services as well as an improved business environment.”

Gondwe said IMF statement should  inspire  confidence that the economy is being managed as well as it should.

”They state that in the medium term (3 to 5 years), growth rates could be high in Malawi. This is the Government’s goal. We are determined to emerge out of a group of poorest countries in the world within the medium term. Yes, Sir, we can and will,” said Gondwe.

However, the country is struggling with debt and there are also fears over growth prospects following combined effects of persistent power blackouts, dry spells and armyworms attack that could shutter growth prospects.

The current drought is estimated to cut maize production by 40 percent or 210 740 tonnes while fall armyworms would cut output by 10 percent or 73 201 tons.

The country’s budget has also been affected by a domestic revenue shortfall of around K38 billion owing to the gross underperformance of the Malawi Revenue Authority (MRA

Gondwe, nonetheless, remains confident, saying with a number of economic measures that will eliminate power outages, tax collection will be normalized in the second half of 2017/18 and yield roughly K70 billion more than was collected in the first half of the year.

It is also expected that Malawi will receive a budget support of K60.0 billion from the World Bank in the course of the second half of the year.

”In the event therefore, for the whole 2017/18 total revenue plus grants would be K1,130.3 billion which is a little higher (2.6 billion) than originally budgeted at K1,127.7 billion,” he said.

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Gawa
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Gawa

We think IMF and World bank are father xmass. Those are purely banks which are there to make profit. First and foremost is to change the mindset of Malawians driving a car means walemela and should start spending within their means. Every idiot should start paying tax working or not working for the survival of our country. Lakeshore districts reforestation should be a MUST for survival of the lake. Some districts is high time to introduce one child a family policy

Pension Nenereko
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Pension Nenereko

What has happened so suddenly? We have been preached to that The ECONOMY is doing fine. Reality Check! Ukanama sikuchedwa kucha!!!!!!!!!!!!!!!!!

winston msowoya
Guest
winston msowoya

Malawians,cast away G.Gondwe’s narratitve that Malawi would be out of economic tulmoil of the poorest nations.If the leaders of our country.remain the same,the change of economic trend will not be realised for the coming century.The greatest foe of Malawi’s economic performance,is CORRUTION,TRIBALISM AND NEPOTISM which have contributed to an imersurable economic downfall Malawi has ever experienced.However,if Malawians are united,the ZUMA saga can happen in our country,before the next election failing which,let’s forget about our dear motherland Nyasaland!!!!!

Bibo
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Bibo

So your economy will grow because partly it will be cushioned by donor support? Where is your national pride Goodall? You need to grow your economy with indegenous productivity-blossoming industrial production, tourism, innovation, and in general, expanded export revenue. The economy has to be broad-based.

It is for this reason why we need young leaders with innovative minds to change the country to prosperity. We are tired of being in the armpits of donors, we need total economic independence.

James
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James

Out of the group of poorest countries? Koma Goodall wakalambandi eti. It’s high time you need to retire madala

Kansire
Guest

Mukuzisusa nokha ,ndiye bwenzi pano mukutu kufunika Budget cuts in allowances travellin and so,so?

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