Malawi’s economy which is heavily dependent on agriculture, is set to grow by 5% this year, up from 4% the previous year and in line with IMF projections, said the central bank.
According to AfDB’s outlook of Malawi’s economy, the country’s real GDP growth was an estimated 3.7% in 2018, down from 5.1% in 2016/17, which was a recovery from 2.7% in 2015/16. In 2016/17, growth was boosted by agricultural growth of 6.3%, up from a contraction of 0.1% in 2015/16, driven by better weather.
Despite ranking as one of the poorest countries in the world, Malawi has – over the last ten years – been able to make significant economic and structural reforms to sustain its economic growth.
Malawi’s development is guided by the Malawi Growth and Development Strategy (MGDS), a series of five-year plans that contribute to the long-term development goals outlined in Vision 2020. Currently in MGDS III, with the theme “Building a Productive, Competitive and Resilient Nation,” will run through 2022 and focuses on education, energy, agriculture, health and tourism.
Malawi’s President Peter Mutharika had promised to grow the economy by at least 7 percent a year between this year and 2024.