RBM paints bleak economic outlook for 2021

The Monetary Policy Committee (MPC) of the Reserve Bank of Malawi (RBM) has forecasted subdued domestic economic growth for the year 2021 due to the second wave of COVID – 19 pandemic.

Through a media release signed by the RBM Governor Dr Wilson Banda following the MPC’s first meeting in 2021, the committee said the sharp rise of cases at the beginning of year has caused government to institute strict measures.

These measures have moderated the pickup in economic activities that started to pick up in the fourth quarter of last year.

According to the MPC economic growth will depend on how quickly the country can contain and overcome the pandemic.

Reacting to the news, economic commentator Professor Betchani Tchereni from the University of Malawi’s Polytechnic, has called on the government to quickly move in and find a way toncontain the virus to salvage the economy.

“I would suggest that containing the virus is very important, the vaccines need to be in country as early as possible so that we can begin to contain the virus,” said Tchereni.

The outlook also comes at a time when the MPC has decided to maintain the Policy Rate at 12.0 percent to cushion some of the effects of the pandemic on the economy.

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