Malawi 2009 Growth Forecast Cut to 7.7 Pct-Cbank

Source from:  Reuters 11/12/2009

Malawi's economy was expected to grow by 7.7 percent in 2009, lower than the 7.9 percent expansion forecast earlier this year, central bank Governor Perks Ligoya said on Wednesday. He said the adjustment was largely due to lower income from sales of tobacco, the southern African country's biggest export. "Low tobacco revenues have forced us to revise the growth target and the IMF is in agreement with our figures," Ligoya told reporters at a joint press briefing with officials from the International Monetary Fund. Earnings from tobacco are about 9 percent down on the $472 million generated last year. Malawi's economy expanded by 9.7 percent in 2008, making it one of the world's fastest growing economies, according to the IMF. The country has enjoyed strong growth for the past four years, boosted by good maize harvests. The IMF's Malawi mission chief Janet Stotsky said growth would remain high, despite the global downturn, boosted partly by the start of uranium production. "Malawi has weathered the global economic storm relatively well … growth is projected to remain robust in 2009, reflecting continued strong tobacco and maize crops, the start of uranium production, and expanding wholesale and retail trade in the country." Inflation had slowed this year, reflecting easing food and fuel prices and restrained credit growth, she said. Consumer ifnlation stood at 7.5 percent year-on-year in September after hitting a two-year high of 10.1 percent in January. Enditem