Malawi to slip into economic recession as Covid-19 takes its toll —NBM plc

Malawi could be heading  for economic recession with gross domestic product (GDP)  projected to contract by -3.5 percent as the financial toll of the coronavirus continues to escalate.

All signs point towards recession in Malawi

A recession is a macroeconomic term that refers to a significant decline in general economic activity.

Malawi did not go into full national lockdown for Covid-19, but the local infections and deaths due to the virus pandemic continues to soar.

In its July Monthly Economic Review published on Saturday, National Bank of Malawi (NBM) plc said like many countries across the world, Malawi’s growth prospects are shrouded in uncertainty with the worst-case real GDP to experience a recession.

“Burgeoning public debt and deficit spending coupled with the worst-case recession forecast means that the new administration may not have recourse to a fiscal stimulus package to kick-start the economy. Fiscal consolidation remains the only viable option for the new Minister of Finance,” reads the review in part.

“Options include enhanced domestic and external resource mobilisation and public expenditure efficiency, prioritisation and monitoring not only to right size the civil service but also streamline procurement,” added the  Malawi Stock Exchange-listed bank.

NBM Plc indicates that Malawi economy is expected to rebound in 2021, growing by an estimated 4.5 percent buoyed by the growth in agriculture; wholesale and retail trade; mining and quarrying; electricity, gas and water; information and communication and financial and insurance services.

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Desderata Marmite
Desderata Marmite
7 months ago

Is what has been reported here true or they are just fables? The opening to your discourse makes sense but deep into your write-up the message gets distorted when you start to talk of the rebounding of the economy in 2021. Mention is made on mining, electricity, water, gas etc. When did Malawi begin to export the above mentioned commodities for us to be able to benefit from such products and to what magnitude do we produce them to even have surpluses? Report facts and not fallacies and write when you are not in a hallucination mode.

Mwini muzi
7 months ago

COVID 19 will just escalate the already dead economy. Malawi has always been the poorest country in the world since from the time our currency changed from Pound Shillings and Pence to Kwacha and tambala.

Concerned citizen
7 months ago

How true is it that patient with COVID admitted to Queens are only given pain killers and oxygen?

What drug regime are our brothers and sister being given? If this is indeed true, then this is a crime.

nafundo zalo
nafundo zalo
7 months ago

especially the old regime splashing out money left right centre anyhow. no focus

Concerned citizen
7 months ago

My problem with our scenario in our country is that the death rate appears high at the moment. It is my request to know the regime of drugs required, is indeed being given. Are patients being given dexamethasone? Does it exist in our hospitals? Minister of health, you MUST be on top of your game and give us your assurance that we are abiding by best practice when it comes to treatment. Medical doctors, you are the ones, we assume are in the know, keep the whole system in check. As a country we have not performed well at all… Read more »

Namulondola Njira
7 months ago

Concerned citizen, even the dexamethasone is not going to save the people. It is the hygiene practices and adherence to other measures that are required. You can have overstock of meditation, but that will not stop COVID-19. The second issue is our private clinics and hospitals, they have no testing kits, they are treating people as pneumonia,, asthma or cough. We can have the resources, but if we are not adhering to control measures, we will still have the problem. People should adhere to the measures of breaking down the chain of infection.

Opportunist
Opportunist
7 months ago

We have dexamethasone in all district hospitals but what is most important in our case is prevention

Chikoti
Chikoti
7 months ago

Not good news..eeiisshh..

Truth
Truth
7 months ago

In Kenya there has been a revelations that Covid19 figures are inflated and we can be in the same situation. DPP agents are everywhere Tonse Alliance please woke up.

Truth
Truth
7 months ago
Reply to  Truth

Please Google the Kenyan story you will find it – actually citizens do not know why figures are being lied about. People who have died for other diseases are being reported as Covid19 deaths.

Truth
Truth
7 months ago
Reply to  Truth

The story is “MOH exposed by Daily Nation about Kenya’s Covid19 deaths!

Kaka
Kaka
7 months ago
Reply to  Truth

This is why Africa will be the worst affected. Too much stupidity. The figures across Africa are being suppressed not inflated. There are far more infected people and many deaths than are being reported.

Namulondola Njira
7 months ago
Reply to  Truth

So your line of thinking is that there is no coronavirus in Africa. Ignorance is the same as death. Do you think COVID-19 is for rich countries or they are also cooking up the figures. Ignorance will eat you up.

Truth
Truth
7 months ago

Hope being educated you know what “spurious accuracy” mr educated. I think you will have to google to know it.

Time
Time
7 months ago

Hope being educated you know what “spurious accuracy” mr educated. I think you will have to google to know it.

Kaka
Kaka
7 months ago
Reply to  Truth

This is why Malawi and Africa will be battered by COVID. Because of stupidity like this. In Malawi and across Africa, numbers of infections and deaths are being SUPPRESSED not inflated. There are more deaths in Malawi than are being reported. The same with cases. We have far more cases than what is being reported.

No quite true
No quite true
7 months ago
Reply to  Kaka

Science needs to guide the information we get- we need accurate figures and not incomplete data. The data must have all the necessary information.

Guest
Guest
7 months ago
Reply to  No quite true

True, but better data can only do so much in the current situation. I hope everyone can take the preventive measures until treatment options/vaccines have been found.

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