Finance Minister Forecasts 3.2% Economic Growth in 2024
The growth projection exceeds the 2.2% rate in 2023 but remains below the government's target range of 5-7%.
MZUZU, Malawi - Malawi's Minister of Finance and Economic Planning, Simplex Chithyola Banda, announced Tuesday that the government projects a 3.2% economic growth rate in 2024, signaling a "gradual recovery" from recent challenging conditions, writes Tionge Hara.
Speaking at a press briefing, Banda said the optimistic forecast is due to "significant improvements in foreign exchange availability and strategic investments in agriculture."
The announcement comes amid efforts to revive Malawi's economy after years of turmoil.
"We are cautiously optimistic about the path ahead," Banda said.
"While recovery will be gradual, the fundamentals are pointing in the right direction."
Experts welcomed the news but cautioned more work is needed.
"This is a step forward, but major structural reforms are still required to spur private sector-led growth," said economist David Mwase of the University of Malawi.
The growth projection exceeds the 2.2% rate in 2023 but remains below the government's target range of 5-7%.
Banda's announcement follows recent pre-budget consultations aimed at incorporating public input into the 2024/25 spending plan. Participants highlighted priorities like education.
"Government must continue prioritizing skills development for Malawi's future," said Wales Singini, Vice Chancellor of Mzuzu University.
Others cited misplaced spending, such as Moses Mkandawire of the Nyika Institute Foundation.
"We must stop wasting resources on non-essential items," he said.
The IMF projects Malawi's economy will grow 3.5% in 2024, up from 2.1% in 2023.
The government's full 2024/25 budget proposal is expected in June.
It is pleasing to hear such economic growth news but there is still need to put much effort to curb down the country's common enemy number one, corruption