Malawi: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi

2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi

Volume/Issue: Volume 2021 Issue 269

Publication date: December 2021

ISBN: 9781616354886

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Topics covered in this book

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Banks and Banking , Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , financing gap , fund advice , private sector investment , governance issue , fiscal policy stance , soft commodity , Debt sustainability , International reserves , Africa , Global , Sub-Saharan Africa

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Summary

Malawi, a fragile state with one of the highest incidences of poverty, food insecurity and frequent weather-related shocks, has been severely affected by the pandemic. There are signs of gradual recovery and daily COVID-19 positive cases remain relatively low: real GDP growth in 2021 is projected to pick up to 2.2 percent from 0.9 percent in 2020 helped by a good harvest. However, inflation is expected to increase to 9 percent in 2021 from 8.6 percent in 2020, driven by increases in prices of fuel, fertilizer and food, leaving real per capita growth in the negative region.