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Malawi - Second Governance and Poverty Reduction Support Grant II (GPRSGII) - Project Completion Report
Macroeconomic rationale:Structural challenges make Malawi vulnerable to external shocks. In 2008, the country's fiscal expansionary stance, volatile export earnings and emerging supply side challenges to growth led to pressure on international reserves and jeopardized growth. In 2009/10, Government embarked on a three year Extended Credit Facility arrangement with the IMF to support the Malawi Growth and Development Strategy (MGDS) and restore internal and external equilibrium. The Bank's support of UA 11.5 million was thus aimed at augmenting the resources provided by IMF and other DPs.