Macroeconomic Forecast Malawi

We anticipate that growth will remain stable over the forecast period. However, despite the prospect of solid growth, the main problem remains the persistence of high fiscal deficits that are likely to continue over the medium term. True, in response to IMF pressure, the government is working to address excessive spending on non-essentials and is considering other reforms to improve revenue collection. However, while some improvement here is factored into our forecasts, there is considerable downside risk given the government's past failures to rein in spending.

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