World Bank projects 4.8 % economic growth for Malawi

Written by  MBC Online

A recent report by the World Bank titled 'Global Economic Prospects: Slow Growth, Policy Challenges',  has outlined that the contrary’s economic progress in 2019 was bolstered by sound fiscal prudence, while the Bank projects a 4.8 percent growth for 2020.

The World Bank The World Bank web
16
January

The Bank said creative mobilization of financial resources, tax administration reforms and widening the tax base among other aspects helped to reduce deficits.

 

The report is in sync with Reserve Bank of Malawi’s (RBM) third quarter Performance Review Report, which shows that in the first (Q1) of 2019/20 fiscal year, Treasury posted a deficit of K58.5 billion.

 

The World Bank remains optimistic that the current measures taken by country’s Central Bank will cushion and provide a steady economic growth.

 

Last year spokesperson for the Ministry of Finance, Davies Sado, told the media that Treasury was working on fiscal consolidation to reduce wastage and over expenditure as one way of supporting tight monetary policy.

 

One of the economic exeperts, Betchani Tchereni said :"If you look at the indicators as they are right now in Malawi, if we remove revenue and then we bring in agriculture sector as it were you will realise that the projection of Government is almost to the point.”

 

The country relies much on the agriculture sector and once the sector is affected by other climatic changes, the impact remains significant.

 

This year the World Bank has projected a growth potential of 4.8 percent for the country, while Capital Hill projects a 7 % percent growth.

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