Malawi: Seventh and Eighth Reviews Under the Extended Credit Facility Arrangement and Request for Waivers for NonObservance of Performance Criteria, Extension of the Arrangement, Augmentation of Access, Modification of Performance Criterion, and Rephasing of Disbursements-Press Release; Staff Report; and Statement by the Executive Director for Malawi
IMF Staff Country Reports, June 24, 2016
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- Malawi: Seventh and Eighth Reviews Under the Extended Credit Facility Arrangement and Request for Waivers for NonObservance of Performance Criteria, Extension of the Arrangement, Augmentation of Access, Modification of Performance Criterion, and Rephasing of Disbursements-Press Release; Staff Report; and Statement by the Executive Director for Malawi
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Bibliographic details
- Published: June 24, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498318228.002
Summary and context
- This paper provides a review of the economic performance of Malawi under the program supported by an Extended Credit Facility (ECF) arrangement.
- Malawi’s economy has been hit hard by weather-related shocks for a second consecutive year, further weakening growth and worsening food insecurity.
- Under the ECF program, the macroeconomic framework in the near term will be anchored on a policy mix incorporating a tight monetary stance and a level of domestic fiscal financing consistent with disinflation.
Economic performance and projections
- Growth is estimated to have declined from 5.7 percent in 2014 to 3 percent in 2015.
- Growth is projected to drop further to 2.7 percent this year.
- Weather-related shocks are identified as a primary factor weakening growth and worsening food insecurity.
Program policy orientation and modalities
- Near-term macroeconomic framework elements:
- Tight monetary stance.
- A level of domestic fiscal financing consistent with disinflation.
- The document reviews performance under the ECF arrangement and addresses related policy adjustments and requests (waivers for nonobservance of performance criteria, extension of the arrangement, augmentation of access, modification of a performance criterion, and rephasing of disbursements).
Subjects and keywords
- Subjects: Arrears, Banking, External debt, Public and publicly-guaranteed external debt, Public debt, Public financial management (PFM)
- Keywords: Arrears, budget support, CR, ECF arrangement, estimated recoverable amount method, Global, ISCR, macroeconomic situation, Public and publicly-guaranteed external debt, report, staff appraisal, staff representative, statement