Following natural disasters that have hit the country for the past two years, the Malawi’s economy is said to be at door of the emergency ward.
In 2015, the country experienced deadly floods that washed away the country’s agricultural crops, a main source of Malawi’s Gross Domestic Product (GDP).
Due to flooding during the 2014/15 agricultural season, 3 million were estimated to be food insecure.
The flooding that hit the country was followed by El-nino that led to persistent dry spells in most parts of the country in 2015/16 agricultural season.
The effects of persistent dry spells will force the country to register a drop of 12 percent in its maize harvest.
According to the country’s central bank, Malawi’s economy was said to grow by 5.1 percent.
The factors that were said to boost the economy are improved investor confidence, favourable weather conditions, higher agricultural exports, lower inflation and moderate interest rates.
According to a report from the African Economic Outlook as compiled by Peter Mwanakatwe and Gebrehiwot Kebedew, growth momentum in Malawi was expected to resume in 2016.
However, the World Economic Outlook Global estimates Malawi’s economic growth to rise from 3.1 percent in 2015 to 3.4 percent in 2016 and 3.6 percent in 2017, stating that global economic growth will be gradual and that will have an effect on Malawi as a developing country.
Minister of Finance Goodall Gondwe has been asking for more patience on the Peter Mutharika led government towards revamping the economy.