The International Monetary Fund (IMF) has projected a major rebound for Mali’s economic growth from a low 1.7 per cent in 2013 to 5.8 per cent this year.
According to an IMF mission led by Christian Josz that visited the country, Mali’s economy is returning to its normal growth path after it was battered by insecurity in 2012 and poor harvest last year.
Inflation in the country remains low at one per cent compared to -0.6 per cent in 2013. “For 2015, the projections are for real growth to continue at 5.5 per cent and inflation to remain well below the central bank’s three per cent target,” said Josz.
He added the mission reached an agreement that will permit reviews of the External Credit Facility that is supported by the IMF. The reviews will be presented to the IMF Executive Board for approval in December 2014.
A resolution was found for the issues raised by the extra-budgetary spending on a presidential plane and a military contract, which delayed the first review, originally scheduled for June.
The government will submit soon a new supplementary budget to the National Assembly to regularize the about CFA 30 billion in extra-budgetary spending which occurred in 2014 to be financed in the regional financial market.
This will bring the overall budget deficit to 5.8 per cent of GDP, compared to 5.2 per cent in the supplementary budget approved in August.
“The mission welcomed the budget the government intends to present to the National Assembly in October. The budget, which will be the basis for the ECF program in 2015, targets a global deficit of 4.4 per cent of GDP.
Three quarters of the deficit is financed with donor support, and the rest in the regional financial market. The mission also welcomes the strengthening of structural reforms, notably those aimed at improving tax administration, expenditure control, and debt and treasury management.
International Monetary Fund (IMF)