Malawi falls on global economic freedom index
A new report published this week by The Wall Street Journal and Washington’s think-tank The Heritage Foundation, has indicated that Malawi fell on economic freedom—a measure that includes property rights, control of government spending, monetary freedom and trade freedom.
Malawi was rated as unfree having scored 54.8, which is 0.6 points lower than last year, ranking 126 out of 178 economies.
Regionally, Malawi is ranked on position 25 out of 46 countries in sub-Saharan Africa while its overall score is below the world average.
The think-tank said the country’s performance reflects a decline in property rights, control of government spending, monetary and trade freedom, outweighing gains in business and investment freedom and also freedom from corruption.
Recently, London based Legatum Institute told Nyasa Times that the country dropped 12 places in the 2014 Legatum Prosperity Index, which measures the human and economic prosperity of nations around the world, due to a decrease in a number of objective and subjective variables.
“This is due to a decrease in a number of objective and subjective variables. Objective macroeconomic indicators have worsened in the country since 2012,” explained Solène Dengler research analyst at the Legatum Institute in a response to Nyasa Times questionnaire.
“Gross domestic savings decreased from 8.2% to 5.6% of GDP,” disclosed the research analyst.
“Non-performing loans went up from 3.2% to 6.4% of total loan. Inflation rate increased from 7.4% to 27.3%,” she added.
Malawi’s average 5-year GDP per capita growth rate decreased from 4.2% to 0.2%, said Legatum analyst.
Finance, Economic Planning and Development Minister Goodall Gondwe has conceded the country’s economy is passing through ‘turbulent times’, but said government implemented a number of reforms that could improve the situation.
I have deep resoect for anakysts cz they look at nbrs critically and interprate picture nit reality…but for Agondwe anuwo…jata bug appitite for syccesses by untridycing tax revenue measures.. soon we eill told to use bothsudes if toilet ppr to maje savings for the policsl elite to survive why? since 1994 nalawi is repriducing piverty mpaka 15m plus anthu osauka zedi depending in chinese cash inout motaengil etc.moaka liti?
Well done, Mr Gondwe for accepting the state of affairs. At least, you’re not like information minister, Kondwani Nankhumwa.
But do you see, the situation improving within your term of office. I doubt because most of your colleagues are brutes and thieves. Mentally challenged.
They say things as if they have just been awaken from deep sleep. Good example is Mrs Kaliati. She always misunderstands/ deliberately overlook the point.
PETER and his mate GOODALL are too old to run the country. Goodal you mean we don’t have young people to run the economy . Taona nkhope yako ikukhala ngati chule .Uzafera muofesi. Peter running a country is not a joke!
“The Washington Heritage has made a mistake, it is not Malawi but Nigeria they are talking about” Kondwani Nankhumwa – minister of mis-information.
We see no real development here in Malawi. The government is clue less to what they have to do. Why did people want to be president who clearly are incapable. It’s a job and the job needs the right person you can’t give the most important job in the country to a clown.
Which leader would bring would turn around Malawi within 6months from the cashgate situation? Even if JB continued, she was already heading for disaster and government was already heavily borrowing to fill the deficit.
if this other tribe was not in malawi, we would ne very much ahead.
Amalawi kukula mitima.mumalolera kuti muzivutika koma pompa apa pa mozambique amzathu akunjoya.ali ndi chilichonse ndipo sadikira kuti boma liwachitire.akudziwa zoyenera kuchita kuti miyoyo yawo iyende bwino.
Mozambique was poor at one stage; thanks got the natural gas, aluminum and coal. You can not compare it with Malawi which has nothing!
Vuto lake komwe kumachokera anthu osakaza chuma cha boma ndikomwenso kumachokera anthu aulesi, okonda kupemphetsa nde mukufuna mitundu ina yonseyi ikweze GDP pomwe zambiri zomwe zimalimidwa mmalo mokagulitsa kunja timakhalila mitundu ya anthu aulesi odzikondawa…
This is a non story as what is being reported is the obvious. Failed State run by Lomwe mafia.
Its pity that Malawi is still poor. A country which got independent 50 years ago. Very painful indeed, all because of greedy, selfish, racists and corrupt leaders we had since 1963. Its painful until now, Malawi is knocking at the doors of IMF, Donors, asking for aid. Shame. MCP, UDF, DPP, PP now DPP, these never helped the country’s economy to grow. But plundering, and enriching themselves and their families. These leaders must be shameful themselves.
And then you stand up and call yourselves economical experts? Where is the expertisation here? Cry for Kamuzu Banda.