News Maharishi in the World Today

How We Present
the News







  
Malawi to grow 6.9 pct this year, accept less aid

Reuters    Translate This Article
3 June 2011

LILONGWE (Reuters) - Malawi's economy will grow 6.9 percent this year and 6.6 percent in 2012, allowing the southern African country to weather a hefty decline in foreign aid, Finance Minister Ken Kandodo said in his budget on Friday.

'These growth rates are expected to be anchored by strong performance in the agriculture sector as it rebounds, as well as mining and construction,' Kandodo told parliament.

Malawi's economy grew by 6.7 percent in 2010. Inflation, which slowed to 7.1 percent year-on-year in April, is forecast to decline to 7.0 percent this year and 6.9 percent in 2012, he added.

Foreign aid had accounted for 30 percent of all government receipts last year, compared to 21 percent projected for this year under a zero deficit budget designed to get the country paying for all recurring expenses, such as civil servants' wages, out of its own pocket.

Kandodo's speech made no mention of a decision by Britain, Malawi's single largest donor, to suspend aid worth $550 million over the next four years due to a diplomatic spat between London and Lilongwe.

The argument stems from a leaked British diplomatic cable that referred to President Bingu wa Mutharika as 'autocratic and intolerant of criticism'.

Kandodo said Malawi would continue to need donor support, but it would be channelled towards development projects rather than the day-to-day costs of running the country.

The donor freeze—other countries are said to be considering following Britain's example—has prompted fears of a dollar supply crunch in the country, putting pressure on the Malawian kwacha's exchange rate.

Copyright © 2011 Reuters

Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. 'Reuters' and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies. For additional information on other Reuters media services please visit reuters.com/newsagency .

Global Good News comment:

Global Good News feels it is unfortunate the leaked British diplomatic cable has caused a rift in the relations between Britain and Malawi. Global Good News sees Malawi's potential growth as offsetting the loss of aid from Britain as a positive trend, and it is hoped the relations with the two countries are soon mended.

Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based—Total Knowledge based—programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.



Translation software is not perfect; however if you would like to try it, you can translate this page using:

(Google)
(Altavista babelfish)

Send Good News to Global Good News.

Your comments.


business news business-more

Search | Global News | Agriculture and Environmental News | Business News
Culture News Education News | Government News | Health News
Science and Technology News | World Peace | Maharishi Programmes
Press Conference | Transcendental Meditation Celebration Calendars | Gifts
News by Country | News in Pictures | What's New | Modem/High Speed | RSS/XML