Malawi economy grows by 5% amidst disasters, political violence and Covid-19

Despite the triple pains of natural disasters, escalating political violence and the rage of coronavirus (Covid-19) global outbreak, Malawi economy in 2019 grew by 5 percent.

A man prepares his stall at a market in Blantyre.- Photo by REUTERS/Siphiwe Sibeko

President Peter Mutharika made this revelation during his recorded  State of Nation Address on Friday.

Said  Mutharika on natural disasters: “The country has just survived the economic shocks of the Cyclone Idai. That cyclone was so devastating that we needed $365 million for recovery and rebuilding broken lives.”

He added that as the country was recovering from Idai, another challenge to the economy, in the form of political violence and COVID-19, emerged on the scene.

“As soon as violence failed to shut down our borders and cripple the economy, Coronavirus came and locked down the world. Business has slowed down, revenue collection undermined and demand to spend on social protection increased,” he said.

The Head of State, however, underlined that in spite of the challenges, the economy continues to grow.

“We maintain record low interest rates, a stable currency, single digit inflation rates and low budget deficits.

“With a real GDP growth rate of 5.1 percent, we still have managed to achieve the 2019 targeted 5 percent of economic growth. This is an improvement from the 3.9 percent real GDP growth registered in 2018,” he explained.

Mutharika noted that the growth has been driven by favourable rains and the macroeconomic stability which my Government has maintained.

The President had promised to grow the economy by at least 7 percent a year between last year and 2024.

But he h as revised downwards the  economic growth forecast for 2020 to 1.9% from an earlier projection of 5.1% because of the impact of the virus pandemic.

“Health experts have warned us to brace for the worst. Business has slowed down, and revenue collection will be undermined. It’s under this context that we’re going to base the 2020/21 budget,” Mutharika said.

Mutharika also said the International Monetary Fund (IMF) Extended Credit Facility (EFC) remains on track and the fourth and final review is scheduled for September, 2020.

Follow and Subscribe Nyasa TV :

Sharing is caring!

newest oldest most voted
Notify of
mchisala
Guest
mchisala

Mabodza awa!!! An economy growing at 5% has a lot going for it!!! Remember they were the same guys who were telling us in the Bingu days that the economy was growing at 10-12%, surpassed by only Qatar!!!

Bauleni
Guest

you have very little understanding of economics. Malawi and qatar economy have very different benchmarks. ZImbabwe can have a very good growth rate than u.s.a but that doesnt translate that ZImbabwe is better. it means the economic measures are working and should be sustained and improved.

World Monetary Fund
Guest
World Monetary Fund

Inflation. Was much higher 30 to 50% under Bingu
5% Growth is good compared to other economies 0.05 to 3%

Wahisoni
Guest
Wahisoni

DPP WOYEEEEEEE!!!. Hope you will have a chnace to grow the economy more! I hope we wont leave that growth in the hnads of people who dont even understand!!!

M'Malawi
Guest
M'Malawi

Yes, the economy at State House grew by 5% – not the national economy. These must be cooked up figures.

Frustrated with DPP
Guest
Frustrated with DPP

All lies the DPP Government was reporting that the economy was failing during the campaign to force the Resignation of Jane Ansah and the other Commissioners.

Can only see a NEW ERA with a NEW GOVERNMENT in July

Asasi
Guest
Asasi

BRAVO president Mutharika. President wodekha yemwe he is focused on development.

Shire Dreams
Guest
Shire Dreams

All Governments are Focused on Development and improving the lives I f their citizens
WHAT DID DPP do for you.
I remember Free Education Now it costs k800,000 a semester DPP is NOT helping the POOR they are forcing them to take loans that they cannot repay.
NO MIDDLE CLASS only RICH and POOR no way to BUILD a COUNTRY.
History has taught us the POOR will RISE UP and overthrow those who think they are Kings

Bauleni
Guest

i can start with cancer Centre for starters, rescued us from donor flight after JB and cashgate, Stabilised inflation. Our currency would have been useless against the dollar otherwise. I could go on and on. Its only a fool who fails to acknowledge the achievements of others. Free education lowers the standards of education, Malawi has so many useless graduates roaming the streets with not a single innovation or contribution to the country.This has also been proven the world over.

shares