https://en.sputniknews.africa/20250301/malawi-lowers-growth-forecast-amid-protests-president-blames-opposition-for-economic-struggles-1070882729.html
Malawi Lowers Growth Forecast Amid Protests, President Blames Opposition for Economic Struggles
Malawi Lowers Growth Forecast Amid Protests, President Blames Opposition for Economic Struggles
Sputnik Africa
The downward revision, announced in the annual budget speech by Finance Minister Simplex Chithyola Banda, comes amid growing economic strain and widespread... 01.03.2025, Sputnik Africa
2025-03-01T17:23+0100
2025-03-01T17:23+0100
2025-03-01T17:23+0100
sub-saharan africa
economy
lazarus chakwera
malawi
east africa
inflation
protests
opposition
sabotage
economic growth
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Malawi’s government has lowered its economic growth forecast for 2025 to 3.2%, down from the previously projected 4.0%, as the country grapples with persistent inflation, forex shortages, and mounting public unrest.The new growth forecast reflects ongoing economic difficulties, including the effects of a severe drought that dented agricultural production, which is the backbone of Malawi’s economy. Last year’s GDP growth stood at just 1.8%, with inflation surging to 28.5% in January, fueled by forex shortages that have disrupted imports of key goods such as fuel and fertilizer.To address the crisis, Banda outlined measures to boost foreign exchange inflows by enhancing production in agriculture, tourism, and mining. He also announced plans to establish a national anti-crime unit to crack down on the thriving black market for foreign currency. Additionally, he noted that Malawi has reached agreements with official bilateral creditors and is in ongoing negotiations with commercial creditors to restructure its public debt, which stood at roughly 86% of GDP in September 2024.Protests Over Inflation and Rising CostsAs economic hardships deepen, protests have erupted in major cities, led primarily by street vendors and unemployed youths, media reported. Demonstrators accuse the government of failing to curb rising prices, which they say are pushing them out of business and worsening poverty levels. Demonstrations, initially in Lilongwe, the country's capital, have now spread to Blantyre, Malawi's second-largest city.President Chakwera Alleges Opposition SabotagePresident Lazarus Chakwera, responding to the economic turmoil and protests, stated that elements within the opposition are deliberately exacerbating inflation to destabilize his government.He further warned that such alleged attempts to incite public anger and undermine his administration would not succeed.
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economy, lazarus chakwera, malawi, east africa, inflation, protests, opposition, sabotage, economic growth
economy, lazarus chakwera, malawi, east africa, inflation, protests, opposition, sabotage, economic growth
Malawi Lowers Growth Forecast Amid Protests, President Blames Opposition for Economic Struggles
Christina Glazkova
Writer / Editor
The downward revision, announced in the annual budget speech by Finance Minister Simplex Chithyola Banda, comes amid growing economic strain and widespread protests across major cities.
Malawi’s government has
lowered its economic growth forecast for 2025 to
3.2%, down from the previously projected
4.0%, as the country grapples with persistent inflation, forex shortages, and mounting public unrest.
The new growth forecast reflects ongoing economic difficulties, including the effects of a
severe drought that dented agricultural production, which is the backbone of Malawi’s economy. Last year’s GDP growth stood at just
1.8%, with inflation surging to
28.5% in January, fueled by forex shortages that have disrupted imports of key goods such as fuel and fertilizer.
To address the crisis, Banda outlined measures to boost
foreign exchange inflows by enhancing production in agriculture, tourism, and mining. He also announced plans to establish a national anti-crime unit to crack down on the thriving black market for foreign currency. Additionally, he noted that Malawi has reached agreements with official bilateral creditors and is in ongoing negotiations with commercial creditors to restructure its public debt, which stood at roughly
86% of GDP in September 2024.
Protests Over Inflation and Rising Costs
As economic hardships deepen, protests have erupted in major cities, led primarily by street vendors and unemployed youths, media reported. Demonstrators accuse the government of failing to curb rising prices, which they say are pushing them out of business and worsening poverty levels. Demonstrations, initially in Lilongwe, the country's capital, have now spread to Blantyre, Malawi's second-largest city.
President Chakwera Alleges Opposition Sabotage
President
Lazarus Chakwera, responding to the economic turmoil and protests, stated that elements within the opposition are deliberately exacerbating inflation to destabilize his government.
"Investigations by our intelligence service have found that the current hyperinflation of prices is being done deliberately by some traders in collusion with one of the opposition parties… to make Malawians suffer so that this same party can use the pain being inflicted on innocent Malawians as a campaign tool," Chakwera stated.
He further warned that such alleged attempts to incite public anger and undermine his administration would not succeed.
"Your plot to overthrow my government through this means by instigating an illegal hyperinflation of prices will not succeed," he declared.
