IMF Staff Country Reports

This paper examines the Annual Progress Report on Malawi’s Poverty Reduction Strategy. Malawi could not reach its macroeconomic targets owing mainly to expansionary fiscal policies, which resulted in higher-than-envisaged domestic debt, interest rates, and inflation. The authorities aim to reduce the government’s domestic debt to free fiscal resources for development expenditures and ease credit costs for private sector-led growth. The University of Malawi undertook several activities meant to increase access and equity and to reduce reliance on government subventions.