In-Depth Analysis
Malawi
Malawi is one of Africa’s most impoverished countries and faces significant macro- and socio-economic challenges. It is susceptible to adverse weather conditions, as its agriculture sector still plays a large role in the country’s growth and development. Corruption perceptions harm the economy further by keeping donor nations away.
We forecast the Malawian economy to contract by 2.1% in 2020 due to disruptions in domestic consumption, investments and exports. There is some scope for optimism for the economy as a bumper harvest is expected this year and the 2020 tobacco marketing season is off to a good start. 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. The Constitutional Court on February 3 annulled last May’s presidential elections and the new elections are set for June 23. The election has turned essentially into a battle of alliances formed after last May’s presidential election was annulled and we foresee a run-off as less likely in the coming election. (Source: Malawi Quarterly Update, published May 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-6.6 |
|
Consumer Price Index (% change y-o-y, avg) |
9.4 |
|
Current Account Balance (as a % of GDP) |
-20.6 |
|
Real GDP (annual % change) |
3.0 |
|
GDP per Capita, US$ |
419.6 |
|
Import Cover (months) |
3.1 |
|
Population, million |
18.6 |
| Total External Debt (as a % of GDP) |
34.0 |