In-Depth Analysis
Malawi
Malawi is one of Africa’s most impoverished countries and faces significant macro- and socio-economic challenges. The country is still undiversified, with its agricultural sector playing a large role in the country’s growth and development. Corruption perceptions are still a cause for concern for the economy, but donor support is slowly improving.
A performing 2021 tobacco export market, along with some other developments in the pipeline, has created some much-needed optimism for the current year and may help lift Malawi’s economy out of the doldrums. We expect the economy to expand by 3.1% in 2021, growing modestly by 3.3% p.a. from 2022-25. The country experienced a surge in Covid-19 cases at the start of the year and an uptick in cases at the start of June, which prompted the implementation of new lockdown measures. The government got off to a good start with its vaccination rollout programme in March, but vaccine hesitancy among Malawians has caused the programme to be delayed, thereby thwarting the economic recovery process and subsequently endangering the lives and livelihoods of all Malawians. (Source: Malawi Annual Country Profile, published August 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-11.1 |
|
Consumer Price Index (% change y-o-y, avg) |
8.6 |
|
Current Account Balance (as a % of GDP) |
-19.3 |
|
Real GDP (annual % change) |
0.8 |
|
GDP per Capita, US$ |
464.4 |
|
Import Cover (months) |
2.26 |
|
Population, million |
19.1 |
| Total External Debt (as a % of GDP) |
35.7 |