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Economic outlook mixed—Chamber

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The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has predicted that third quarter of 2020 will have mixed fortunes emanating from impact of Covid-19 pandemic on one side and stability in the political environment on the other.

In its 2020 second quarter review, the chamber notes that the business environment was not favourable during the period under review due to political instability which has stabilized after the June 23 fresh presidential elections.

MCCCI says going forward, it expects an improvement in the global supply chain as well as a significant resumption of global value chains as countries slowly open up their economies.

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It however, warns that increasing number of Covid-19 cases in the country, if not contained, threatens to lock the economy from the rest of the world.

The review adds that as long as the cases continue to increase, restrictions that have affected normal business activity will continue to be enforced and the economy will therefore, continue to be under threat.

“Going into the third quarter of 2020, the assumption is that decisions and polices relating to Covid-19 particularly those affecting businesses will be inclusive of private sector input and an economic recovery plan will be implemented in full regard of both the short-term and long-term effects,” reads the review in part.

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Speaking in a recent interview, Indigenous Business Association of Malawi president, Mike Mlombwa, made similar observations.

Chancellor College economics professor, Ben Kalua said, if not contained, the pandemic could have a devastating effect on the local economy.

“We have to really think out of the box because this pandemic has thrown every country into a very tight situation which gives very little room for preparedness,” Kalua said.

Since the pandemic was discovered in China last year, it has knocked down a lot of sectors of various global economies.

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