Tags: GDP

IMF tips on budget support resumption

  Malawi should accelerate public financial management reforms to restore trust and confidence in the budget process and foster donor re-engagement, the International Monetary Fund (IMF) Executive Board said on Tuesday. But the global multi-lateral lender also says Malawi’s economic outlook remains difficult, encouraging authorities to implement structural reforms to remove supply bottlenecks, increase agricultural…

Donors back health taxes

  Health sector donors have asked the Malawi Government to devise creative ways of improving the taxation system and clear inefficiencies to finance the sector currently suffocating under sharp funding cuts. The donors’ calls come as government has proposed a set of reforms for the health sector, among them the establishment of a health fund…

Firm outlines four  Economic threats

Portfolio and investment advisory management firm Nico Asset Managers Limited has outlined four risks that could stand in the way of Malawi’s economic growth and development. The firm, in its July 2015 monthly economic brief, has mentioned banking sector risk, weak export base, increased government expenditure and high debt levels [foreign and domestic] as likely…

Cumulative tea earnings down 39 percent

Cumulative earnings from tea, one of the country’s export crops, has dropped by 39 percent year-on-year to $2.7 million (K1.2 billion) from the previous year’s $4.4 million (K1.9 billion), according to a latest report. In its monthly economic review for March 2015, Reserve Bank of Malawi (RBM) has attributed the “relatively lower earnings” to lower…

Malawi’s food security improves—report

Malawi’s food security situation has generally improved due to this year’s harvest, which has resulted in lower prices for the staple crop on the market, according to the Food and Agriculture Organisation (FAO) report for 2014. However, this is against the backdrop of a Malawi Vulnerability Assessment Committee (Mvac) report, which indicated that an estimated…

Doubts on Malawi’s 2014 GDP projection

Economic experts have described the 6.3 percent real gross domestic product (GDP) growth rate projection for 2014 as ambitious, forecasting that authorities may be forced to revise the figure downwards in view of prevailing economic situation gripping Malawi. Both the Malawi Government and International Monetary Fund (IMF) are optimistic that the economy would demonstrate strong…

NGO calls for improved funding in Malawi mining sector

Malawi’s booming mining sector should result in increased funding, particularly to the Department of Mines, to enhance the development of institutional capacity, Citizen for Justice (CFJ), a non-governmental organisation (NGO) working in the sector, has said. The NGO says an influx of mining, oil and gas companies demands that authorities should do more to take…

KUM suspension will not affect economy—IMF

Global multilateral lender, the International Monetary Fund (IMF), has allayed fears that the suspension of Kayelekera Uranium Mine (KUM) in Karonga will suppress Malawi’s economic growth in 2014. The Bretton Woods institution has also backed the decision by the Australian miner to have the mine suspended until uranium prices rebound on the international market arguing…

Reflecting on Malawi’s 50 years of post-independence gains and losses

Introduction This week Malawi celebrated 50 years of independence. During these 50 years there have been episodes of progress punctuated by tragedies of missed opportunities and inconsistent policy development and implementation. It is now an opportune time to reflect on the last 50 years and learn from the past, to understand the present and shape…

No business as usual in mining sector—Atupele

Malawi’s newly appointed Minister of Natural Resources, Energy and Mining Atupele Muluzi has said it is high time Malawi stopped the ‘business as usual’ approach in handling the mining sector, promising to change such attitude during his term of office. Muluzi said this at the Bingu International Conference Centre (BICC) in Lilongwe on Wednesday when…

Malawi dismisses CSOs on mining

Malawi’s Ministry of Natural Resources, Energy and Mining has dismissed accusations levelled against it by some civil society organisations (CSOs) that it does not consult them when formulating documents governing the mining sector. Some CSOs such as the Catholic Commission for Justice and Peace (CCJP) and the Citizen For Justice (CFJ), recently outlined weaknesses surrounding…

Malawi economic growth rate below potential

Malawi’s economic growth is far below its full potential with the country’s 2013 Gross Domestic Product (GDP) having increased by about half compared to its possible full throttle. The World Bank June 2014 Global Economic Prospects Report released this week indicates that Malawi achieved 4.2 percent GDP growth rate in 2013—in contrast to 6.1 percent…

Goodall pledges economic stability

Newly-appointed Finance Minister Goodall Gondwe has described the state of the economy as ‘depressed’ saying there is little economic activity taking place. But Gondwe, now doubling also as the Economic Planning Minister, has vowed to bring about the much-needed macroeconomic stability by lowering down both interest and inflation rates as well as maintain enough foreign…

The yellow cake that never cheered Malawi

Announced amid a huge political storm—a post election impasse refusing to abate—news that Australian energy giant, Paladin Energy Limited has halted production at the country’s sole uranium mine at Kayelekera in Karonga has been greeted with nervousness and regret by the country’s economic watchers. The development has, however, received a little lukewarm reaction than it…

Malawi’s fiscal deficit worst in Africa—report

Malawi’s fiscal deficit—the difference between government expenditure and revenues—was the worst in Africa in 2013, according  to World Bank publication Africa’s Pulse for April, apparently  due to over-expenditure and aid freeze. Africa’s Pulse, a publication that analyses issues shaping Africa’s economic future, explains that the largest deterioration of fiscal balances occurred among oil exporters and…