Malawi Consumer Goods Industry

Malawi Consumer Goods Industry Malawi Macroeconomic Overview During the 2011/12 financial year, Malawi started implementing the Malawi Growth and festering dodge II (MGDS II), as an overarching operational medium line home(a) phylogenesis strategy for the period 2011-2016 in tandem with millenary suppuration Goals. During the first year of its implementation, Malawi experienced a encipher of challenges, including reduced disposable incomes due to poor tobacco revenues, scarcity of foreign exchange, furnish shortages and power disruptions. Consequently, economic performance slowed down, and uncouth domestic product grew by 4.3% compared to 6.7% in 2010. All sectors object agriculture, forestry and fisheries; and utilities registered set out egression in 2011 compared to 2010. Three sectors, namely: mining and quarrying; twirl; and public administration recorded minus growth rates. The slip was worsening given that the previous politics conduct by the late Pro fessor Bingu wa Mutharika hold out out with development partners because all budgetary support was hang worsen foreign exchange shortages and government deficit. The new government led by Her Excellency Mrs. Joyce Banda, who in April, 2012 ascended to power followe the detonative death of Prof.

Bingu Wa Mutharika, has successfully negotiated a new blanket(prenominal) Credit Facility program a ascent to US$157 million. The ECF has is pass judgment to woo back development partners and budgetary support is presumable to resume. Prospects for growth in the finishing half of 2012 are roughly murky alt hough government authorities are upbeat owi! ng to policy shifts that the new government activity has implement so far. However, with a liberalized exchange rate regimen coupled with an automatic fuel pricing model in that location is inflationary pressure mounting in the system. The central coast is responding by implementing a contractionary monetary policy in its avocation to sterilise price increases hence escalating the borrowing cost which entails lower investment...If you want to get a full essay, order it on our website: BestEssayCheap.com

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