- June 5, 2023
- Posted by: admin
- Categories: Current News, macroeconomic management
The development of applied analytical tools that can support effective economic analysis and policymaking in Central Banks and Ministries of Finance, Planning, and Economic Development remains a priority in the region.
An effective policy decision-making process is buttressed by the ability to diagnose the state of the economy in an adequate and timely manner. This is especially true in the face of major economic shocks when decision-makers need to gather and interpret a lot of information in a short space of time. In this regard, officials in MEFMI member countries need to be capacitated with the requisite skills to understand the tools that can be used to effectively diagnose the macroeconomy.
It is against this background that MEFMI and IMF-ICD conducted a joint workshop on Macroeconomic Diagnostics. The workshop took place in Gaborone, Botswana, from 20 – 31 March 2023. The main objective of the workshop was to support member countries in developing their capacity to comprehensively assess the macroeconomic situation in their respective countries. The course was delivered in three (3) parts. The first part introduced the macroeconomic framework, using the case of South Africa. It analysed potential output, calculated output gaps, and diagnosed the outlook of the economy. The second part analysed aggregate demand, inflation, as well as the stance of monetary policy and fiscal policy while the third part of the workshop assessed macro-financial linkages, including the analysis of financial sector soundness indicators.
The workshop also looked at the medium-term prospects of the economy, especially the sustainability of public and external debt, and identified risks to long-term growth. Participants also identified possible external and internal economic risks and vulnerabilities to economic growth and proposed some remedial policies. It concluded with group presentations aimed at demonstrating understanding of macroeconomic diagnostics. The objective of the group assignment was to encourage participants to apply the techniques discussed during the course to diagnose the economy and recommend appropriate policy responses. It is anticipated that from this workshop, officials gained knowledge and skills which allow them to improve macroeconomic diagnosis and analysis in their respective countries.
A total of 27 officials from 10 MEFMI member countries, namely Botswana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Tanzania, Uganda, Zambia, and Zimbabwe attended the workshop. Of the 27 participants, 10 (37%) were female while 17 (63%) were male. This workshop targeted officials responsible for macroeconomic analysis and forecasting. The workshop was facilitated by a team of resource persons from the IMF, namely Mr. Ruy Lama, Mr. Emanuel Kopp, and Mr. Werner Schule