Malawi Economic Monitor, July 2024
Economic growth in Malawi fell short of expectations in 2023 and is projected to remain subdued in 2024. While implementation of planned macroeconomic and structural reforms is expected to boost Gross Domestic Product (GDP) growth over the medium term, an El Niño-induced drought has worsened the near-term growth outlook. Addressing Malawi’s difficult economic situation requires a combination of immediate emergency-response efforts and the implementation of structural reform. However, downside risks continue to dominate the outlook. The impact of climate-related shocks during the current El Niño year could be larger than anticipated, while fiscal slippages, delays in debt restructuring, or the slow implementation of public financial management reforms could further increase macro-fiscal instability. The continued lack of foreign-exchange availability could result in shortages of critical imports, which would reduce economic activity. At the end of 2023, the government reached an agreement with the IMF on a four-year program under the Extended Credit Facility (ECF), and the resumption of budget support from the World Bank and African Development Bank will support important reforms designed to accelerate long-term growth. These achievements have bolstered confidence in the reform process, but success is far from assured. Rebalancing the economy and enabling faster, more inclusive growth, while strengthening resilience against shocks will require accelerating reform efforts. This nineteenth edition of the Malawi Economic Monitor (MEM) outlines urgent policy measures required to stabilize the economy, protect vulnerable households, and enhance long-term growth.
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-07-23
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| Subjects: | SOCIAL PROTECTION SYSTEMS, SAFETY NETS, SOCIAL PROTECTION INFRASTRUCTURE, SDG 2, |
| Online Access: | http://documents.worldbank.org/curated/en/099071724103515033/P17952911466830541bbed1eb3d3ade0049 https://hdl.handle.net/10986/41931 |
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| Summary: | Economic growth in Malawi fell short
of expectations in 2023 and is projected to remain subdued
in 2024. While implementation of planned macroeconomic and
structural reforms is expected to boost Gross Domestic
Product (GDP) growth over the medium term, an El
Niño-induced drought has worsened the near-term growth
outlook. Addressing Malawi’s difficult economic situation
requires a combination of immediate emergency-response
efforts and the implementation of structural reform.
However, downside risks continue to dominate the outlook.
The impact of climate-related shocks during the current El
Niño year could be larger than anticipated, while fiscal
slippages, delays in debt restructuring, or the slow
implementation of public financial management reforms could
further increase macro-fiscal instability. The continued
lack of foreign-exchange availability could result in
shortages of critical imports, which would reduce economic
activity. At the end of 2023, the government reached an
agreement with the IMF on a four-year program under the
Extended Credit Facility (ECF), and the resumption of budget
support from the World Bank and African Development Bank
will support important reforms designed to accelerate
long-term growth. These achievements have bolstered
confidence in the reform process, but success is far from
assured. Rebalancing the economy and enabling faster, more
inclusive growth, while strengthening resilience against
shocks will require accelerating reform efforts. This
nineteenth edition of the Malawi Economic Monitor (MEM)
outlines urgent policy measures required to stabilize the
economy, protect vulnerable households, and enhance
long-term growth. |
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