11.1: Macroeconomic Growth
The long-term goal is the attainment of sustainable macroeconomic growth and development. Other Information:
Macroeconomic growth in a stable political and economic environment is a prerequisite for sustainable economic growth and
wealth creation. In the past few years, the country experienced unstable macroeconomic environment mainly due to fiscal indiscipline.
The macroeconomic fundamentals such as inflation, interest rates and exchange rates have not been suitable for economic growth
and development. Interest rates still remain high to generate real investment. Inflation rates are high and fluctuating, while
the Malawi Kwacha exchange rate against major currencies has been unstable and depreciating. Major challenges include the
reduction of the unsustainable Government debt, privatisation of parastatals that continue to draw down on public resources,
maintaining a sustainable fiscal deficit, unpredictable donor financing and external shocks such as increasing petroleum prices...
Medium Term Expected Outcomes: In the medium term, it is expected that Malawi shall achieve a favourable macroeconomic environment
with low inflation (below 5.0 percent), lower interest rates, non-volatile exchange rates, reduced Government borrowing and
sustainable debts.
Indicator(s):
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