Malawi: 2012 Article IV Consultation and Request for a New Arrangement Under the Extended Credit Facility: Staff Report; Staff Supplements; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Malawi
IMF Staff Country Reports, August 3, 2012
Source details
- Canonical URL
- Malawi: 2012 Article IV Consultation and Request for a New Arrangement Under the Extended Credit Facility: Staff Report; Staff Supplements; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Malawi
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Bibliographic details
- Published: August 3, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475506112.002
Economic outlook and assessment
- The Malawian economy is "slowly recovering."
- Recovery is attributed to corrective measures including the "floating exchange rate regime" and "liberated current account transactions."
- Stabilization challenges highlighted include inflation control and rebuilding of international reserves.
Policy recommendations and suggested measures
- Fiscal policy:
- "Stringent fiscal discipline" is recommended to help stabilize the macroeconomy.
- Measures to "ensure revenue gain concurrent with spending" are recommended.
- Monetary policy:
- "Restrained monetary policies" are recommended to control inflation.
- Exchange rate and external sector:
- Continued use of the "floating exchange rate regime" is presented as a corrective measure.
- Boosting "international reserves" is recommended to strengthen external buffers.
- Public management and development strategy:
- Implementation of "Malawi Growth and Development Strategy II (MGDS-II)" is suggested.
- Adoption of "results-based management (RBM)" and emphasis on "Operation power and freedom" for RBM and MGDS-II implementation are recommended by the Executive Board.
Executive Board observations
- The Executive Board suggests operationalizing RBM and implementing MGDS-II to improve public sector outcomes.
- The Board emphasizes that stabilization and inflation control require coordinated fiscal and monetary restraint alongside reserve accumulation.
Subject focus and keywords (as listed)
- Subject: Budget planning and preparation, Central banks, Expenditure, Foreign exchange, Imports, International reserves, International trade, Public financial management (PFM)
- Keywords: amount equivalent to SDR, anchor inflation expectation, Budget planning and preparation, CR, current account transaction, devaluation, ECF arrangement, equivalent, floating exchange rate regime, Global, government, Imports, International reserves, ISCR, prudent fiscal policy, second growth
Source: Malawi: 2012 Article IV Consultation and Request for a New Arrangement Under the Extended Credit Facility: Staff Report; Staff Supplements; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Malawi.