Thursday, July 18, 2024

IMF Deputy Managing Director says Malawi on track to restore macroeconomic stability

International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath on Monday concluded her visit by meeting the Malawi leader President Lazarus Chakwera at Kamuzu Palace in the capital Lilongwe.

“I want to thank President Lazarus Chakwera, as well as the Minister of Finance and Economic Affairs, Mr. Sosten Gwengwe, and the Governor of the Reserve Bank, Dr. Wilson Banda for the productive exchange of views and warm hospitality,” the Deputy IMF chief said in a statement.

She added:

“We discussed the economic and developmental prospects for Malawi. I commended the authorities’ efforts under the Staff-Monitored Program with Executive Board Involvement (PMB) to restore macroeconomic stability, which will set the stage for stronger durable growth and poverty reduction.”

According to her, macroeconomic adjustment and reforms in the country are gaining traction and said it would be important to maintain the momentum in the period ahead.

“We also discussed the policies that would be necessary to solidify the country’s hard-won gains. Securing a debt treatment would be vital for macroeconomic stability and ensure that additional financing could be used to address Malawi’s pressing developmental challenges,” she said.

The deputy DIrector also disclosed that strengthening fiscal discipline and addressing weaknesses in governance remain essential.

“The close engagement between Malawi’s economic team and IMF staff in the context of the second review of the PMB is welcome, as is the authorities’ request for an arrangement under the Extended Credit Facility. IMF staff and management will continue to offer their strong support to the authorities’ efforts to stabilize the economy,” she concluded.

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