Reserve Bank of Malawi - Annual Report 2006

Malawian growth picked up in 2006, after a poor economic performance in 2005.

The economy expanded by 8.5% in 2006, in comparison with growth of 2.2% in 2005.

The central bank said the strong performance was spearheaded by the agricultural sector following good rains and the introduction of the government's fertilizer subsidy programme.

Inflation continued to decelerate, falling to 10.1% by the end of December. Annual headline inflation averaged 13.9% in 2006 compared to 15.4% the previous

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