Malawi expects to see its GDP grow by 4.3 percent this year and 5.7 percent next year while inflation will remain in double digits, largely due to a recent devaluation of the kwacha, finance minister Ken Lipenga told parliament yesterday.
“Inflationary pressures in 2012 continued to rise, reflecting a loose fiscal and monetary stance. Coupled with the pass through from currency adjustments, we now estimate inflation in 2012 at 18.4 percent with the prospects of decelerating to 16.1 percent in 2013…” he said.
Malawi’s economy had been in a tailspin for about a year after former president Bingu wa Mutharika picked a fight with major donors that led a $121 million budget hole in the 2011/12 fiscal year.
But the new government installed in April has worked to restore aid flows with the finance minister Ken Lipenga saying that grants have for the 2012/13 budget increased by 140 percent compared…
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