IMF, Malawi in talks to fix economy-Xinhua

IMF, Malawi in talks to fix economy

Source: Xinhua| 2024-05-24 22:58:15|Editor: huaxia

LILONGWE, May 24 (Xinhua) -- The International Monetary Fund (IMF) said its mission agreed with the Malawian authorities on new measures to restore macroeconomic stability in light of recent shocks.

In a statement released Thursday, the IMF projected the southern African country's growth rate at 2 percent, down from its earlier projection of 3.3 percent, acknowledging the effects of El Nino, which it said continue to affect economic performance.

The statement also said the mission, which visited Malawi from May 12 to 23, had productive discussions with the authorities.

"We reached a common understanding of the efforts needed to return to a sustainable fiscal adjustment path, rebuild external buffers, and restore debt sustainability. We also have a clear roadmap toward the completion of the review," the statement said.

The IMF mission, led by Mika Saito, an advisor at the African Department of the IMF, met Wednesday with Malawian President Lazarus Chakwera, who expressed optimism that his country, a member of the Least Developed Countries, is on the path to recovery from a series of economic shocks.

Chakwera, however, emphasized the need for the country to be vigilant in managing its economy to promote growth and further its recovery.

Malawi's economy was expected to recover with a growth rate of 3.3 percent, from 1.5 percent in 2023 and 0.9 percent in 2022, but long dry spells have led the World Bank and the IMF to lower the country's growth prospects to 2 percent.

While acknowledging that El Nino effects will dampen growth prospects, Malawi's central bank did not revise its 3.3 percent growth forecast in a recent monetary policy statement.