The World Bank says Malawi’s economic growth will drop from 1.8% last year to 0.9%.
The bank attributes the drop to enormous challenges Malawi is facing.
The World Bank is also recommending a market based exchange rate as one step of restoring macroeconomic stability.
This has made through its latest Malawi Economic Monitor, which strives to provide an insight on the country’s economic direction.
The bank has called for a debt restructuring process as well as the empowerment of small holder farmers which are critical for economic transformation.
Meanwhile, the Reserve Bank of Malawi is disclosing that the forex situation could be eased if forex externalisation was minimized.
It is estimated that Malawi loses over 400 billion kwacha annually, due to illicit flows which are plunging the country into forex shortages.
RBM Director of Economic Policy and Research Kisu Simwaka has pointed out that there is a need for strong stakeholder coordination if the problem of forex externalisation problem is to be addressing.