Budget deficit to rise to 8.8%/GDP in Malawi’s next fiscal year

Published

2 years ago

March 2, 2023

Malawian Finance Minister, Sosten Gwengwe has revealed that government sees the budget deficit for the fiscal year that starts in April at 1.01 trillion kwacha ($998 million).

The projection also meant 8.8% of the country’s GDP, went up from 8% in the fiscal year that ends this month.

The minister made the revelation on Thursday in a budget speech to parliament that the higher deficit was partly driven by spending on civil servants’ salaries.

The projection for 2023 economic growth is 2.7% in 2023, up from a forecast of 2.6% given at a mid-term budget review in November, before rising to 3.4% in 2024.

A budget deficit occurs when expenses exceed income (i.e., tax and other borrowed revenue), usually measured over a single financial year.

Gwengwe added that increases in agricultural output and a stabilisation of the energy and mining sectors would underpin growth.

The Malawian economy is heavily dependent on agriculture, which employs over 80% of the population, and is vulnerable to external shocks, particularly climatic shocks.

The Southern African country is landlocked and shares its borders with Mozambique, Zambia, and Tanzania.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”