IMF Staff Completes Mission to Malawi
IMF News, May 23, 2024
Source details
- Canonical URL
- IMF Staff Completes Mission to Malawi
Other formats
Bibliographic details
- Published: May 23, 2024
Mission details
- An IMF staff team led by Ms. Mika Saito visited Lilongwe from May 12 to 23, 2024 to conduct discussions on the First Review of the ECF-supported program.
- The program was approved by the IMF Executive Board on November 15, 2023.
- Press Release No. 24/177
- Press officer: Tatiana Mossot
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- @IMFSpokesperson
Discussions and outcomes
- The team had productive discussions with the authorities; discussions will continue in the coming weeks to finalize policies to support the completion of the ECF review.
- The IMF team and Malawian authorities reached a common understanding on efforts needed to:
- return to a sustainable fiscal adjustment path,
- rebuild external buffers,
- restore debt sustainability,
- mitigate the El Nino-induced disaster.
- The IMF team acknowledged the authorities’ firm commitment to successfully complete the first review of the ECF-supported program.
Economic outlook and impact of El Nino
- Weather-related shocks continue to impact the Malawian economy, exacerbating food insecurity.
- The economic outlook for 2024 remains positive but economic growth is now projected at 2 percent reflecting the impact of El Nino on agricultural production and spillovers to the rest of the economy.
- A successful winter crop would cushion the impact of drought on the agriculture sector.
Policy priorities and reforms
- Fiscal discipline remains critical in the face of elevated spending pressures.
- Rebuilding international reserve buffers and normalizing the foreign exchange market are critically important to:
- facilitate the return of trade credit,
- reduce vulnerability to external shocks.
- Addressing weakness in governance and institutions remains important.
- Successful external debt restructuring is vital for macroeconomic stability.
Review process and next steps
- Discussions will continue in the coming weeks toward completion of the First ECF Review.
- The IMF team expressed gratitude: “The team would like to thank the Malawian authorities and other counterparts for their cooperation, warm hospitality, and constructive discussions.”
International Monetary Fund