As the year 2015 draws to an end, an economic expert has described the year as a period of ups and down for the country’s economy.
Early this year, Malawi experienced natural disasters which eventually led to 2.8 million people facing hunger and this, coupled with the withdrawal of aid by donors has greatly affected the country’s economy.
However, the economist, Nelson Mkandawire, said the country started well as compared to the current economic situation.
“The country started on a higher note this year as compared to now and the high inflation rate, high bank lending rates among others show that the economy is fragile,” said the former Economics Association of Malawi (Ecama) Executive Director.
He further said that one of the contributing factors to the economic challenges are the floods the country encountered this year as most people lost their property and crops.
“Our economy is a fragile one; when one sector has been affected all the other sectors are also affected. In this respect we can see how the floods affected other sectors of the country,” he said.
Mkandawire further said that issues of cashgate and International Monetary Fund’s withdrawal of aid to Malawi also affected the economy of the country. He added that he expected the public reforms to make sectors grow but this has not been the case.