## IMF Staff Completes Mission to Malawi

_IMF News, May 23, 2024_

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**Canonical URL:** [IMF Staff Completes Mission to Malawi](https://www.imf.org/en/news/articles/2024/05/23/pr-24177-malawi-imf-staff-completes-mission)

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## Bibliographic details
- Published: May 23, 2024

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### 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*

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## References

- [Malawi and the IMF](http://www.imf.org/external/country/MWI/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/05/23/pr-24177-malawi-imf-staff-completes-mission_