Malawi’s Economy Remains Fragile – Lipenga
Malawi’s Finance Minister Ken Lipenga on Friday while presenting the midterm budget review statement conceded that the economy of the southern African country was still fragile despite recent reform measures.
The Minister was however quick to indicate that the economy remained weak due to the failure to make tough economic decisions in the past.
“Mr. Speaker Sir, we are still grappling with these challenges and implementing austerity measures to stabilize the economy. Our import cover, though improving, remains precarious and the general price level continues to upwards,” said Lipenga, sounding poetic.
He said to correct the past mistakes and put the economy on a sustainable path to recovery tough policy decisions had to be made.
“Mr. Speaker, Sir, I will be the first to admit that the challenges we face are real. Addressing these challenges and generating sustainable economic growth will require sustained commitment to the reform process,” said Lipenga.
The People’s Party government instituted the reforms after inheriting a tattered economy from the late President Bingu wa Mutharika.
Among others, the government adopted the Automatic Fuel Pricing and floated the local currency but this has led to high cost of living as traders keep on hiking prices.
Employees have responded with a wave of industrial actions demanding higher salaries as well.
Currently, civil servants are also on strike demanding salary increment and it is highly likely that the strike will pro-long as government is giving all the signs that it doesn’t have money.—Zodiak Online
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