Malawi
Malawi is one of Africa’s most impoverished countries, and faces significant macro-and socio-economic challenges. Corruption perceptions harm the economy further by keeping donor nations away.
We expect economic growth to decline to 3.0%, lower than previously forecast at 3.7% for 2019 and lower than 3.5% growth recorded in 2018. This revision in our growth forecasts is due to Malawi’s 2019 tobacco marketing season doing markedly worse than the 2018 season with high rejection rates on the auction floors, leading to low average prices. Further downside risks to growth is limited foreign exchange reserves, an exchange rate coming under pressure, and a weaker global trade outlook. Long-run economic growth prospects are uncertain as the country remains heavily dependent on the weather-vulnerable agricultural sector and is also still experiencing power disruptions. On the political front, due to May’s election outcome still being contested by some, protests and demonstrations have flared up in Malawi. (Source: Malawi Quarterly Update, published August 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-7.2 |
|
Consumer Price Index (% change y-o-y, avg) |
9.2 |
|
Current Account Balance (as a % of GDP) |
-15.4 |
|
Real GDP (annual % change) |
3.5 |
|
GDP per Capita, US$ |
388.7 |
|
Import Cover (months) |
3.5 |
|
Population, million |
18.2 |
| Total External Debt (as a % of GDP) |
35.4 |