Govt admits that the country’s economy will continue being unstable
The country’s economy will continue to be unstable as Malawi government continues borrowing funds, with revelation that national debt has now worsened from K9.3 trillion to K13.1 trillion as of December 2023 leading to a GDP ratio of 85 percent.
Richard Kaudza, deputy director of Debt and Aid in the ministry of Finance revealed this in Lilongwe today at the launch of a Malawi Debt Sustainability Study by the Centre for Social Concern (CSC).
Kaudzu said the debt level is currently at K13.1 trillion due to the recent Kwacha currency alignment which is now pegged at 41% higher, with domestic borrowing also making a huge contribution to the debt levels.
Executive director Centre for Social Concern, Father James Ngahy indicated that despite being a worse public debt, there is an urgent need to invest in key sectors like Agriculture,Tourism and Mining to maximise on balancing the economy using local revenue, than depending much on borrowing.
