Some analysts have warned that differences on how the Malawi Government and key development partners expect the economy to grow in the 2016\/2017 financial year are likely to create confusion which may eventually affect budget implementation.<\/p>\n
Making his 2016\/17 budget statement, Finance Minister Goodall Gondwe forecast that the Malawi economy would grow by 5.1 percent while the International Monetary Fund (IMF) and the World Bank expect the economy to grow by 2.7 percent and 2.6 percent respectively.<\/p>\n
And local economic think tank, the Economics Association of Malawi (Ecama) expects the economy to grow by at least three percent based on instability in key macro-economic fundamentals as well as weather related shocks that have left half the population facing hunger this year.<\/p>\n
Latest statistics show Malawi\u2019s inflation rising to 21.5 in May, and analysts fear that the trend will remain the same casting doubt on improvements in other fundamentals such as interest rates and the exchange rate.<\/p>\n
In an exclusive interview on Times Television<\/em>, Ecama president, Henry Kachaje, said there was no clear basis for government\u2019s 5.1 percent economic growth projection. He said the projection would only create unrealistic assumptions on the budget.<\/p>\n \u201cEverything in the budget is geared at supporting the notion that we can grow the economy by 5.1 percent. If this is a wrong assumption, we are likely to end up with some fiscal slippages,\u201d warned Kachaje.<\/p>\n Kachaje added that the difference in growth expectations may further send a wrong signal to other partners which may in turn affect their planning.<\/p>\n The Malawi economy grew by 3.1 percent last year against a projection of over five percent by government.<\/p>\n","protected":false},"excerpt":{"rendered":" Some analysts have warned that differences on how the Malawi Government and key development partners expect the economy to grow in the 2016\/2017 financial year are likely to create confusion which may eventually affect budget implementation. Making his 2016\/17 budget statement, Finance Minister Goodall Gondwe forecast that the Malawi economy would grow by 5.1 percent […]<\/p>\n","protected":false},"author":3,"featured_media":27445,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-27437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=27437"}],"version-history":[{"count":1,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27437\/revisions"}],"predecessor-version":[{"id":27446,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27437\/revisions\/27446"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/27445"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=27437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=27437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=27437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}