Malawi Lowers 2025 Economic Growth Forecast Amid Rising Inflation and Protests
Malawi’s government has lowered its 2025 growth forecast from 4.0% to 3.2% amidst rising inflation that has sparked protests, primarily from street vendors. The budget revision reflects public discontent, with the protests spreading from Lilongwe to Blantyre. Last year’s growth was just 1.8%, hindered by regional drought, and current inflation is reported at 28.5%.
The government of Malawi has revised its economic growth forecast for 2025, reflecting growing public dissatisfaction over inflation-induced hardships. This change, announced in the annual budget, has led to widespread protests primarily driven by street vendors who are struggling amidst soaring prices. Many of these protesters have rallied in both the capital, Lilongwe, and the commercial hub, Blantyre, and have been joined by unemployed youth frustrated with President Lazarus Chakwera’s administration.
Finance Minister Simplex Chithyola Banda disclosed that the economic growth projection has been lowered to 3.2%, down from a previous estimate of 4.0% made last December. The economic struggles are compounded by last year’s growth of only 1.8%, largely due to significant impacts from a regional drought that severely affected agricultural production, critical to Malawi’s economy. Currently, annual inflation stands at 28.5%, as recorded in January, deepening the crisis for many citizens.
In conclusion, Malawi’s economic outlook has worsened as rising inflation incites public unrest, particularly among street vendors and unemployed youth. The government’s growth forecast has been revised downward, highlighting ongoing economic challenges exacerbated by prior agricultural failures and inflationary pressures. The public’s discontent underscores the urgency for effective government measures to combat inflation and stabilize the economy.
Original Source: www.usnews.com
