Firm tips government on Mid-Year Budget Review
Investment portfolio firm, Alliance Capital Limited, has singled out agriculture, energy, unemployment and government debt as key issues which needs to be discussed with ‘clear-headedness’ during the mid-term budget review.
In its published weekly market review on Wednesday, the firm said while these are not the only problems confronting the Malawi economy, improving in these areas, the Malawian economic landscape will register, noticeable improvement.
“Not only will there be growth in figures, it will be growth people can notice and benefit from. It will be growth which comes with jobs, economic resilience, no starvation and improved standards of living,” said the firm in the market review.
Contributing a substantial 30 percent to gross domestic product (GDP), the firm said agriculture is likely not to perform as expected this year due to the dry spells and army worms, a situation that calls for short and long-term intervention.
The firm also said rising debt is also a matter of concern. Malawi’s debt stock is currently paged at K2.4 trillion, of which K1.2 trillion was external debt and K1.2 trillion was domestic debt as at December last year.
