Malawi: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi

IMF Staff Country Reports, December 18, 2015

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Bold economic reforms undertaken in mid-2012 transformed the policy environment and greatly improved the outlook of the economy.
Over 2012–14, real GDP growth and inflation averaged 4.3 percent and 24.5 percent, respectively.
The economic outlook remains difficult due to:
- negative impact of weather-related shocks,
- ongoing suspension of budget support,
- persistently high inflation,
- weaker global demand which could hurt Malawi’s exports.
Real GDP growth is projected to fall by 2.7 percentage points to 3 percent in 2015.

Growth and inflation history:
- Real GDP growth averaged 4.3 percent over 2012–14.
- Inflation averaged 24.5 percent over 2012–14.
2015 projection:
- Real GDP growth projected to decline by 2.7 percentage points to 3 percent in 2015.
Principal downside risks highlighted:
- Weather-related shocks affecting output.
- Suspension of budget support reducing fiscal space.
- Persistent inflation pressures.
- Weaker external demand affecting exports.

Malawi: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi — December 18, 2015