Sub-Saharan Africa
Malawi
Malawi’s economy is projected to grow by 2.0% in 2024 – a contraction in per capita terms given 2.6% population growth. Limited availability of agricultural inputs and the impact of prolonged dry spells during the growing season will result in reduced agricultural output.
Continued liquidity challenges in foreign exchange markets are expected to continue affecting the importation of raw materials and productions inputs, constraining economic activity in industry and services. Headline inflation is expected to remain high and average 27.4% in 2024. The disinflationary impact of tightening monetary policy will be offset by lower agricultural output and resultant pressures on food prices. The adjustment of energy and other utility prices necessitated by the adjustment of the kwacha and planned for 2024 will add to inflationary pressures. Revenue is projected at 21.5% of GDP in FY2024/25. This outcome assumes the achievement of ambitious tax revenue targets, as well as increased disbursements of grants, which are expected to reach 5.4% of GDP, the highest in the last decade.
Expenditure is expected to moderate slightly to 28.4% of GDP, thus translating to a projected fiscal deficit of 6.6% of GDP in FY2024/25. Failure to attain ambitious revenue targets and overspending would widen the deficit further, which would add to an already high and unsustainable public debt burden. Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth. The current account deficit is projected to remain high at 20% of GDP. With heightened food insecurity, both from high food prices and shortages owing to anticipated lower agriculture output, poverty is expected to worsen in 2024. The proportion of people living below the poverty line of $2.15 a day will increase slightly to 72% in 2024.
7
Infrastructure, Services, Food and Beverage
0.508
How is this information gathered?
SDG Investor Maps employ an 8-step methodology, combining data research and stakeholder consultations to identify Investment Opportunity Areas (IOAs) and potential business models with significant financial and impact potential.
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