By Chisomo Phiri
The Malawi’s Central Bank,Reserve Bank of Malawi (RBM) says it is optimistic that the local economy will grow by 3.2 percent this year from 1.5 percent last year.
This is contained in its statement on the first 2024 Monetary Policy Committee (MPC) meeting which took place on 31 January and 1 February 2024.
RBM says even though the positive outlook is threatened by El Niño-induced weather conditions and a highly uncertain global economic and geopolitical environment, the economy will still grow, supported by an increase
in public investment and recovery in mining and quarrying, manufacturing, information and communication, financial and insurance activities among others.
The bank’s committee has also agreed that the policy rate should be at 26 percent.
RBM’s projected growth of 3.2 percent is in line with last week’s International Monetary Fund (IMF) projection of 3.3 percent economic growth this year.
The growth further shows that the economy is recovering after growing by 0.9 percent in 2022 and 1.5 percent last year as it was struggling with the effects of Covid-19 and the Russia-Ukraine war among others.
RBM was established in 1964 to serve as the banker of the government.
The bank issues legal tender currency as well as formulates the monetary policy of the country.
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