Written by YAMIKANI SIMUTOWE
BLANTYRE--The International Monetary Fund (IMF) says Malawi’s inflation rate, currently at 25.5 percent and the highest in SADC region, should drop by 7 percent in two years.
IMF claims that the country’s economy whose growth in 2011 and 2012 was reportedly at 3 percent is likely grow by over 5 and 6 percent in 2013 and 2014 respectively.
In a recent three-year extended credit facility, IMF backs program objectives that include low inflation, increasing international reserves, and reforms to expand financial services and improve the investment climate in order to promote sustained inclusive growth.
And the IMF has confidence in Malawi’s current fiscal policies hence the economy recovery prediction.
Last week government through Economic Planning Minister Atupele Muluzi and Information Minster Moses Kunkuyu outlined government’s economic plans, which some quarters say is not clear.
One local senior economist, Friday Jumbe, has since concurred with the IMF but said this will depend on how government will handle critical economic policies and the next agricultural season performance.
Jumbe, a former finance minister and a senior member of opposition United Democratic Front, expressed optimism saying government should just revisit the policies and reorganize itself in managing the economy.
Earlier last month IMF provided $156 million, about 43 billion kwacha loan to Malawi for devaluation cushioning activities.
© The Maravi Post 2012. Reproduction without acknowledgement prohibited