Africa-Press – Malawi. The World Bank has urged Malawi to consolidate effort towards addressing challenges facing the economy to hasten the recovery from effects of the Covid pandemic and global supply chain disruptions. The advice is contained in the July 2022 Bridgepath Capital Limited Economic Report.
The Britton Woods’ institution, as quoted by the portfolio management and advisory firm, recommends hastened sealing of pressure points in the fiscal space and continued prudence in public financial management, among other things.
According to the report, areas requiring quick attention include restoring macroeconomic stability through a coordinated package of reforms, enhancing competitiveness and market-oriented growth, and protecting the poor and strengthening resilience.
The bank says the reforms should encompass fiscal consolidation, debt workout, and institutionalisation of a flexible and well supported exchange rate regime.
The World Bank also recommends improved governance and increased competitiveness of Malawi’s exporters, focusing on agricultural commercialisation and productivity growth
“Social protection programmes must be reinforced to prevent deterioration in consumption and welfare,” the World Bank suggests.
In an interview yesterday, Minister of Finance Sosten Gwengwe said the government was already working on the challenges in coordination with development partners including the World Bank and the International Monetary Fund.
He, however, said the country still needs direct financial support if it is to hasten the recovery process. “Malawi needs serious Balance of Payment support to stabilise the macro economy and it can only come from non-debt creating instruments and that is where the World Bank and the IMF are crucial,” he said.
The Malawi economy has faced many challenges emanating from exogenous shocks and historic problems. In 2020 the economy grew by a meagre 0.9 percent, but peaked up slightly to 2.8 percent in 2021.
The year, the government projected a 4.1 percent growth rate which was recently revised downward to 1.7 percent. Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk. He is however flexible as he also writes about current affairs and national issues.
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