Malawi: Request for Disbursement Under the Rapid Credit Facility and Request for a Staff Monitored Program with Executive Board Involvement-Press Release; Staff Report; and Statement by the Executive Director For Malawi
IMF Staff Country Reports, November 23, 2022
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- Malawi: Request for Disbursement Under the Rapid Credit Facility and Request for a Staff Monitored Program with Executive Board Involvement-Press Release; Staff Report; and Statement by the Executive Director For Malawi
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Bibliographic details
- Published: November 23, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400225970.002
Economic conditions and external constraints
- Foreign exchange shortages together with exchange rate misalignment led to a sharp decline in imports including fuel, fertilizer, medicine, and food.
- International reserves pressures are implied by the foreign exchange shortages and import compression.
Fiscal and monetary developments
- Large fiscal deficits, nearly 10 percent of GDP in FY2021/22, have been largely financed by domestic bank borrowing.
- Financing of deficits through domestic bank borrowing resulted in rapid money growth.
- Inflation reached 25.9 percent in September 2022.
- Exchange rate pass-through and hikes in food prices contributed to inflationary pressure.
Food security, agricultural impact, and near-term outlook
- Multiple tropical storms and below-average crop production have increased food insecurity in Malawi.
- Increasing prices for food and agricultural inputs such as fertilizer and seeds are expected to affect the current planting season.
- As a result of these factors, about 20 percent of the population is projected to be acutely food insecure during the upcoming 2022/23 lean season (October 2022-March 2023), more than twice as many as in 2021.
Report metadata and thematic focus
- Subject areas: Central banks, Debt service, Debt sustainability, External debt, International organization, International reserves, Monetary policy, Public debt
- Keywords: Africa, debt advisor, debt restructuring strategy, Debt service, Debt sustainability, financing gap, Global, government subsidy program, International reserves, Southern Africa, track-record building SMP
Content in this bundle
- 1mwiea2022001