The Minister of Finance Economic Planning and Development Dr. Goodall Gondwe on Wednesday disclosed that the country’s economy is lowering because of the high inflation rates persisting in the country.
Gondwe said this in Parliament when he delivered a ministerial statement on the status of the economy in the country.
He said the main economic problem in the country which he said is the micro economy which is stabilized as evidenced by persistent high inflation rate and attendant high level of interest rate and volatile depreciating exchange rate has negatively affected the economy of Malawi.
According to the Minister he said despite these measures taken to achieve the economy have been pursued simultaneously that is for medium term program for boosting electrical power supply to be achieved in medium term and long term.
Said Gondwe; “This is the goal of the transformed economy into an industrialized and mineral income in the country that is being pursued together with the short term goal of restoring micro-economic stability.
“In this case Government plans to achieving medium term goals elaborately presented in the Millennium Development Goals Strategy (MDGs) document and long term perspective are contained in vision 20 document which may have to be reviewed and revised by the proposed for National Economic Planning Commission whose establishment President Professor Peter Mutharika announced in his statement.”
He said as it could be expected, the President statement mainly gave an outline of the government view of the state of economy and an outlook for immediate future.
“I was surprised that there were some who were critical of this approach and expect for the President to give a length and detailed account of what we intend to do, therefore, here I would want to attempt to elaborate a number of issues he took up particularly on five, we are confidently … plans are there to achieve the economic goals of the country,” said Gondwe.
Adding that “in short Mr. Speaker Sir the goal is to resume economic normality in the coming year or two, we will therefore not deal with the medium and long term for economic transformation and therefore those who wish to criticize for not having long term plans for growth should know that they are out of order.”
He said consequently; the money for goods and services is declining steadily economic activity has slapped down and inconsequence employment levels and income are stagnant and that poverty level is rising.
The Minister said unfortunately for Malawi this year, over and above such poor economic outlook at a huge or slabs and severe drought condition afflicted the country causing a huge shortage of food countrywide and severely damaged tobacco production which is key export commodity that helps to stabilize the exchange rate.