Goodall upbeat on 7% GDP growth prospects | The Times Group

Goodall upbeat on 7% GDP growth prospects | The Times Group: Finance, Economic Planning and Development Minister, Goodall Gondwe, has reiterated that the local economy could accelerate by seven percent in 2019 amid pessimism from some economic think-tanks. Gondwe’s assertion comes as commentators say attaining a Gross Domestic Product (GDP) growth of above five percent this year remains a farfetched dream saying the outlook remains highly vulnerable to internal and external shocks

Our Comment on Goodall Giondwe's  elusive 7 percent

Our Minister of Finance has been singlehandedly aiming at 7percent growth which he has over the years claimed was just around the conner

On may May 18, 2017, Finance Minister Goodall Gondwe said Malawi’s economic growth was forecast at 7 percent this year from 5.1 percent in 2016, helped by a recovery in the agriculture sector, on Thursday.

By the end of the year, the Minister had lowered expectations but he was still upbeat about the country registering economic growth of over five percent despite acknowledging the possible threat to the same created by extended power outages. 

On  Malawi  21, 2018 Finance Minister, Goodall Gondwe, pronounced in the 2018/19 budget statement that  GDP would   grow 4.1 pct this year

In the letter of intent sent to the IMF on October 30th, 2018, Goodall Gondwe wrote: “Economic growth is expected to accelerate from just above 3 percent in 2018 to around 4 percent in 2019 and to 6-7 percent over the medium term.”

 A few months later the 4 percent had morphed into 7 percent. On January 3, 2019, the Minister expressed hope that the economy would grow by at least seven percent in 2019. The economic growth will be propelled by the stability in “macroeconomic fundamentals” in 2018.

Why is the Minister obsessed with 7 percent?  The reason is that only a 7 percent growth rate will make a dent in the immense poverty in Malawi. As the Minister stated on May 20th 2017: “There will be others who will be apprehensive about this objective and will be arguments as to why this objective is too ambitious. However, the target of growth of 7 percent per year is an ambition that is not based on complicated mathematical economics but it has to be attained if the aspirations of Malawians are to be satisfied”.

 Anything less means poverty is growing. We haven’t come anywhere close to 7 percent during his current reign as Minister of Finance.

IMF cuts Malawi’s Growth to 3.3% - The Nation Online

IMF cuts Malawi’s Growth to 3.3% - The Nation Online: IMF cuts Malawi’s Growth to 3.3% Eric Mtemang’ombe October 11, 2018 0 Comments � Malawi’s gross domestic product (GDP) growth will drop to 3.3 percent in 2018, declining by 0.7 percentage points from four percent recorded in 2017, blamed on declining maize output and power outages that have slowed down industrial growth, the International monetary Fund (IMF) has said. The IMF projection, contained in the World Economic Outlook for October 2018 released on Monday, is 0.2 percentage points lower than the economic growth recorded in 2017 and 2.4 percentage points lower than the 2018 average for low income countries.

IMF says 5% inflation target achievable | The Times Group

IMF says 5% inflation target achievable | The Times Group: The International Monetary Fund (IMF) has said Malawi could attain the five percent inflation target by 2021 if the system maintains a prudent economic management.

The Fund said the economy could even attain disinflation—a temporary slowing of the pace of price inflation by 2023.

Malawi’s headline quickened by 0.3 percentage points in August to 9.3 percent as escalating food prices continued to bite.

International Monetary Fund (IMF) Reaches Staff-Level Agreement on the First Review of Malawi’s Extended Credit Facility | Africanews

International Monetary Fund (IMF) Reaches Staff-Level Agreement on the First Review of Malawi’s Extended Credit Facility | Africanews: he IMF team reached a staff-level agreement with the authorities of Malawi on the completion of the first review under the Extended Credit Facility; Moderate economic growth is likely to strengthen to about 4 percent in 2019, followed by a rise to 6-7 percent over the medium term; Looking forward, fiscal policy should focus on actions to restore budget balance to correct for last year’s spending overruns and help cope with any shortfalls in budget support.

An International Monetary Fund (IMF) team led by Pritha Mitra, Mission Chief for Malawi, visited Lilongwe from September 25-October 5, 2018 to conduct discussions on the first review of the three-year arrangement for Malawi under the Extended Credit Facility (ECF) [1] (see Press Release No. 18/157 ).

At the end of the mission, Ms. Mitra issued the following statement:

“The IMF team reached a staff-level agreement with the authorities of Malawi on the completion of the first review under the Extended Credit Facility (ECF), which is subject to the approval of the IMF Executive Board.

IMF team in next week for ECF review | The Times Group

#IMF team in next week for ECF review | The Times Group: REE— It will also reflect on lessons An International Monetory Fund (IMF) mission team is expected in #Malawi next week for the first review of the Extended Credit Facility (ECF) programme worth about K82.3 billion ($112.3 million) the fund’s executive board approved in May 2018. IMF Resident Representative to Malawi, Jack Ree, said in a response to an emailed questionnaire that an advance team of the ECF mission would be in the country next week.

IMF fingers Admarc loan | The Times Group

IMF fingers Admarc loan | The Times Group:



IMF fingers Admarc loan
Posted By: Macdonald Thom on: February 15, 2018 In: National No Comments
The International Monetary Fund (IMF) has pointed out key challenges the 2017/18 budget is
experiencing, stressing the need to find solutions.
The IMF has cited revenue shortfalls and expenditure over-runs as some of the challenges
affecting the budget.
At a press conference in Lilongwe yesterday, Mission Chief to Malawi, Pritha Mitra, specifically
cited a bailout of maize purchase loans by the Agricultural Development and Markerting
Corporation (Admarc) as one of the issues which exerted pressure on the budget.
According to Minister of Finance, Goodall Gondwe, K45 billion was used to bailout Admarc.
The IMF team was briefing the media on the just-ended Article IV Consultations and Negotiations
on the next Extended Credit Facility (ECF) Programme.





'via Blog this'

Authorities weigh in on economic growth | The Times Group

Authorities weigh in on economic growth | The Times Group:





Authorities weigh in on economic growth

Posted By: Grace Thipa on: January 26, 2018 In: Business No Comments

Economic think tanks are projecting the Malawi economy to grow between five and 5.5 percent in

2018 riding on the back ot continued availability of food and prudent fiscal expenditure, among

other factors.

The International Monetary Fund (IMF) nas put growth in Gross Domestic Product at five percent

this year but nas said the tigure may change atter periodic statutory consultations with member

countries, a process that is expected to start next week.





'via Blog this'

Inflation eases to 7.1% | The Times Group

Inflation eases to 7.1% | The Times Group:





Inflation eases to 7.1%

Posted By: Taonga Sabola on: January 18, 2018 In: Business No Comments

Malawi's headline inflation eased by 0.6 percent in December to hit 7.1 percent, thanks to

improved food availability, the National Statistical Office (NSO) has said.

The December 2017 inflation is 12.9 percentage points better than that recorded in December

2016.

NSO said urban and rural inflation rates stand at 6.8 percent and 7.6 percent, respectively.

"Overall, food inflation stands at 4.3 percent from 4.7 percent in November 2017 while non-food

inflation stands at 10 percent from 11 percent," NSO said.

On average, Malawi's headline inflation rate for 2017 averaged 11.5 percent compared to the

annual headline inflation of 21.7 percent in 2016.





'via Blog this'

Inflaton drops to six-year low - The Nation Online

Inflaton drops to six-year low - The Nation Online:





Inflaton drops to six-year low

Tinenenji Chalanda @ January 2, 2018 o Comments

After six years of waiting, the country's year-on-year inflation rate dropped to a single digit,

thanks to fiscal and monetary policies as well as a drop in food prices.

Food has a huge weight at 50.1 percent in the Consumer Price Index (CPI), a measure that

examines the weighted average price of a basket of consumer goods and services.



'via Blog this'

World Bank’s Press Release On Resuming Direct Budget Support To Malawi…$80 Million Boost for Fiscal and Agricultural Reform Efforts – Malawi Voice

World Bank’s Press Release On Resuming Direct Budget Support To Malawi…$80 Million Boost for Fiscal and Agricultural Reform Efforts – Malawi Voice: "World Bank’s Press Release On Resuming Direct Budget Support To Malawi…$80 Million Boost for Fiscal and Agricultural Reform Efforts By Malawi Voice Reporter on May 5, 2017No Comment WASHINGTON, May 4, 2017— The World Bank Board of Executive Directors today approved an $80 million credit to the Malawi Government for general budget support. This is the first budget support financing approved by the World Bank for Malawi in four years. The budget support operation, fully referred to as the Agricultural Support and Fiscal Management Development Policy Operation (DPO), is the first of a proposed series of two operations. It aims to improve incentives for private sector participation in agricultural markets and to strengthen fiscal management through more effective expenditure controls and greater transparency. The DPO supports a series of policy and institutional reforms that the Government of Malawi is undertaking in order to reduce distortions in, and improve the performance of the agricultural sector; and to restore basic public financial management and accountability systems."



'via Blog this'

Optimism as inflation eases | The Times Group

Optimism as inflation eases | The Times Group: "Optimism as inflation eases
Posted By: Caroline Kandieroon: March 20, 2017In: BusinessNo Comments
Minister of Finance and Economic Planning Goodall Gondwe has hinted at the possibility of a reduction in interest rates after inflation eased to 16.1 percent in February from 18.2 percent in January.

Latest figures released by the National Statistics Office show that inflation, also described as the rate at which the price of goods and services fluctuate, slowed by two percentage points in the past month. This should come as good news to consumers as this means there will be an improvement in disposable incomes."



'via Blog this'

Malawi: Economic Developments 2015 | Afribiz.info

Malawi: Economic Developments 2015 | Afribiz.info: "Malawi’s economy continued to recover from the contraction in GDP experienced in 2012 as a result of slippage in macro-economic policies and withdrawal of budgetary support by development partners (DPs) over governance concerns, which precipitated an acute shortage of foreign exchange and fuel, crippling the economy. In 2014, the country’s economy is estimated to have grown by 5.7%, supported by strong expansion in agricultural and manufacturing output, construction, wholesale and retail trade, and services."



'via Blog this'

-Malawi to revise national budget after IMF suspends credit facility

By Mabvuto Banda

LILONGWE, Oct 1 (Reuters) - The International Monetary Fund has suspended loans to Malawi for failing to cut its wage bill and improve revenue collection, making it less likely Western donors will resume budgetary aid, the finance minister said on Thursday. Read More here

Malawi's economic growth to slow to 3 pct in 2015 after flooding

READ MORE HERELILONGWE, Sept 30 (Reuters) - Malawi's economic growth will slow to 3 percent this year from 5 percent in 2014 due to severe flooding in January that affected food production, the International Monetary Fund said on Wednesday.

Malawi governement optimistic on 6.1% growth - BNL Times

Malawi governement optimistic on 6.1% growth - BNL Times: "Minister of Finance Maxwell Mkwezalamba is upbeat the Malawi economy will grow by 6.1 percent in 2014, despite several factors such as withdrawal of aid from development partners and the suspension of mining activities at Kayerekera Uranium mine in Karonga, which could hamper progress.

Speaking to the media recently, Mkwezalamba said that the country is experiencing some economic stability following measures the government put in place but some economic commentators have since observed that the country may not be able to make the target as it is currently facing several derailing factors."



'via Blog this'

World Bank urges Malawi to ‘stay the course’ on economic reforms | Malawi News

The Maravi Post - World Bank urges Malawi to ‘stay the course’ on economic reforms | Malawi News: "WORLD BANK URGES MALAWI TO ‘STAY THE COURSE’ ON ECONOMIC REFORMS

Created on Thursday, 20 June 2013 19:34 Written by MARAPOST CHIEF CORRESPONDENT

Pres. Banda
BLANTYRE (MaraPost) -- The World Bank, one of the major sponsors of Malawi’s tough economic reforms, has urged the poor southern African nation to “stay the course” on its economic reforms."

'via Blog this'

Malawi MPs approves K630.5bn national budget for 2013/14

Malawi MPs approves K630.5bn national budget for 2013/14 | Malawi Nyasa Times - Malawi breaking news in Malawi: "

National

Malawi MPs approves K630.5bn national budget for 2013/14
By Nyasa Times Reporter

June 21, 2013   ·   4 Comments
 Email This Post



Malawi Parliament on Friday unanimously approved the  National Budget to enable the government fund its operations in the financial year of 2013/14.

The lawmakers nodded to the financial plan after passing the remaining three votes as part of the K630.5 billion allocated to"

'via Blog this'

Lipenga to unveil Malawi budget on Friday

Lipenga to unveil Malawi budget on Friday | Malawi Nyasa Times - Malawi breaking news in Malawi: "



Malawi’s Minister of Finance Ken Lipenga  will present his 2013/14 budget statement to parliament on Friday an annual budget likely to stick firmly to  Joyce Banda government’s austerity drive as the country’s economy continue to heal"

'via Blog this'

Foreign reserves surge

Foreign reserves surge: "Foreign reserves surge
MONDAY, 20 MAY 2013 09:47 KINGSLEY JASSI
The foreign currency situation in the country continues to improve, with the import cover climbing to 1.63 months as of May 10, official figures have indicated.

Last Friday's daily money market report by Reserve Bank of Malawi (RBM) shows that official foreign reserves jumped to US$306 million by May 10 from US$240 million at the beginning of the month."

'via Blog this'