## Malawi: Request for Disbursement Under the Rapid Credit Facility and Request for a Staff Monitored Program with Executive Board Involvement-Press Release; Staff Report; and Statement by the Executive Director For Malawi

_IMF Staff Country Reports, November 23, 2022_

## Source details

**Canonical URL:** [Malawi: Request for Disbursement Under the Rapid Credit Facility and Request for a Staff Monitored Program with Executive Board Involvement-Press Release; Staff Report; and Statement by the Executive Director For Malawi](https://www.imf.org/en/publications/cr/issues/2022/11/23/malawi-request-for-disbursement-under-the-rapid-credit-facility-and-request-for-a-staff-525884)

## Other formats

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## Bibliographic details
- Published: November 23, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400225970.002

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### Economic conditions and external constraints
- Foreign exchange shortages together with exchange rate misalignment led to a sharp decline in imports including fuel, fertilizer, medicine, and food.
- International reserves pressures are implied by the foreign exchange shortages and import compression.

### Fiscal and monetary developments
- Large fiscal deficits, nearly 10 percent of GDP in FY2021/22, have been largely financed by domestic bank borrowing.
- Financing of deficits through domestic bank borrowing resulted in rapid money growth.
- Inflation reached 25.9 percent in September 2022.
- Exchange rate pass-through and hikes in food prices contributed to inflationary pressure.

### Food security, agricultural impact, and near-term outlook
- Multiple tropical storms and below-average crop production have increased food insecurity in Malawi.
- Increasing prices for food and agricultural inputs such as fertilizer and seeds are expected to affect the current planting season.
- As a result of these factors, about 20 percent of the population is projected to be acutely food insecure during the upcoming 2022/23 lean season (October 2022-March 2023), more than twice as many as in 2021.

### Report metadata and thematic focus
- Subject areas: Central banks, Debt service, Debt sustainability, External debt, International organization, International reserves, Monetary policy, Public debt
- Keywords: Africa, debt advisor, debt restructuring strategy, Debt service, Debt sustainability, financing gap, Global, government subsidy program, International reserves, Southern Africa, track-record building SMP

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- **1mwiea2022001**
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_Source: https://www.imf.org/en/publications/cr/issues/2022/11/23/malawi-request-for-disbursement-under-the-rapid-credit-facility-and-request-for-a-staff-525884_