Malawi 2009 growth seen above 7 percent

Victor Mbewe

Malawi expects its economy to grow by more than 7 percent in 2009 compared to last year’s estimated 9.7 percent, boosted by a bumper maize crop and strong performance in other key sectors, Reserve Bank Governor Victor Mbewe has said.

Mbewe told Reuters in an interview that the economic outlook for the southern African nation was ‘good’ despite the global financial downturn, citing the crop, the start of uranium production and increased activity in the telecommunications sector.

“We expect the economy to expand above the average 7 percent this year,” he said, declining to elaborate.

The Economist Intelligence Unit has forecast Malawi will have the world’s fastest growing economy after Qatar this year, but annual gross domestic product is still around just $313 per capita and AIDS has orphaned about one million children.

The economy grew by an estimated 9.7 percent in 2008, boosted by expansion of the telecommunication industry, high tobacco sales and a strong maize harvest, according to the International Monetary Fund.

The IMF also forecast strong growth for 2009 on the back of another good harvest and the start of uranium production but warned of risks from the global economic downturn.

“We also expect inflation to remain at single digits this calendar year,” said Mbewe.

He said lower exports of the main crop tobacco had affected the economy.

“The low foreign cash position is also attributed to the disruptions in the tobacco market which has seen sales suspended over low prices, “said Mbewe. -Reuters

Tagged with: economy, forex, inflation, Reserve Bank of Malawi, Victor Mbewe

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