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.
As Malawi enters 2021, there are few green shoots to talk about that could aid the country’s economic recovery. Overall, we estimate that the economy contracted by 1.2% in 2020 but should rebound modestly during 2021-24, growing by 3.5% p.a. over this period. Malawi experienced a surge in new Covid-19 confirmed cases at the start of the year, which prompted the implementation of new lockdown measures to try and curb the spread of the virus. The government plans to commence with its vaccination programme in March, prioritising doctors, and a successful rollout is critical to support the economy as it sets off on its road to recovery. (Source: Malawi Quarterly Update, published March 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-11.5 |
|
Consumer Price Index (% change y-o-y, avg) |
8.6 |
|
Current Account Balance (as a % of GDP) |
-19.7 |
|
Real GDP (annual % change) |
-1.2 |
|
GDP per Capita, US$ |
433.6 |
|
Import Cover (months) |
2.5 |
|
Population, million |
19.1 |
| Total External Debt (as a % of GDP) |
38.2 |