Malawi Government expects gradual economic recovery with a growth of 3.2 percent in 2024

The Minister of Finance and Economic Affairs, Simplex Chithyola Banda, says the government expects to register gradual economic recovery with a growth of 3.2 percent in 2024 on account of the improvements in the availability of foreign exchange and investments made in the agriculture sector.

Chithyola Banda made the remarks when he opened a pre-budget consultation meeting at the Bingu International Convention Centre in Lilongwe on Wednesday.

The minister also disclosed that the government is focusing on diversifying economic activities that are aimed at recovering, developing and protecting our economy through the RDP strategy.

“The government has embarked fully on supporting the private sector to venture into Mega Farms through the Malawi Agricultural, Industrial Investment Cooperation to produce for both local and export markets. Government is also focus to diversify the economy through carbon markets trading, Diaspora engagement and Golden Visa Programme, as well as quantifying our natural minerals for investment,” he said.

According to Chithyola Banda, the economy performed better in 2023 with an estimated GDP growth of 1.5 percent as compared to a growth of 0.9 percent registered in 2022.

However, the minister acknowledged the continued upward trajectory of prices experienced in 2023, with the end period and annual average inflation rates estimated at 35.7 and 29 percent respectively.

He said the rates were higher than the 2022 rates, which registered end period inflation of 25.4 percent and annual average of 20.9 percent.

But Chithyola Banda was quick to raise hopes among Malawians, saying the government anticipates inflation to slowly decline in 2024, with the end period and annual average inflation rates projected at 17.4 percent and 27.1 percent, respectively.

“I want to assure you that we will do our best to fully recover from the shocks the Country experienced in 2022 and 2023,” he said.

Annually, the Ministry of Finance and Economic Affairs conducts pre-budget consultation meetings to solicit views, contributions and inputs into the National Budget.

The pre-budget consultation meetings provide a platform for all stakeholders in the business community; non-governmental organizations; faith based organizations and the academia, to present their views and proposals on the National Budget.