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

November 23, 2022

Preview Citation

Format: Chicago

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, (USA: International Monetary Fund, 2022) accessed November 21, 2024

Summary

Foreign exchange shortages together with exchange rate misalignment led to a sharp decline in imports including fuel, fertilizer, medicine, and food. Large fiscal deficits, nearly 10 percent of GDP in FY2021/22, have been largely financed by domestic bank borrowing, resulting in rapid money growth and inflation of 25.9 percent in September 2022. Exchange rate pass-through and hikes in food prices added to inflationary pressure. In addition, food insecurity in Malawi has increased dramatically under the impact of multiple tropical storms, below-average crop production, and increasing prices for food and agricultural inputs such as fertilizer and seeds. The latter 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.

Subject: 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

Publication Details

Pages:

121
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2022/352
Stock No:

1MWIEA2022001
ISBN:

9798400225970
ISSN:

1934-7685

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