World Bank projects difficult times ahead
The World Bank says attaining economic stability still remains a challenge for Malawi on the basis of adverse weather conditions and resulting food shortages, which are negatively impacting on growth.
The sentiments come just a few weeks after the World Bank projected a slowdown in Malawi’s economic growth this year.
The World Bank expects the economy to grow by 2.6 percent, a sharp contrast to Finance Minister, Goodall Gondwe’s, 5.1 growth estimate.
In an interview last week, the bank’s Country Representative, Laura Kullenberg, said owing to food shortages induced by El Nino, the path towards economic stability remains difficult. Estimates show that over half of the population is at risk of hunger this year.
Kullenberg said, as a result, more resources in the 2016/17 national budget will be channelled towards recovery and not longterm economic growth measures.
“This year has been tough because of the drought and it is coming at the back of the floods, so it’s a very difficult time. We are hoping that with the recovery measures underway coupled with consistent policies, the country can be stabilising again, but it’s been a tough time,” Kullenberg said.
Giving her assessment of the doing business environment, she said challenges still remain. She said this partly affects effort towards economic growth for the country.
“The doing business agenda has been a long-term agenda and Malawi has moved rather slowly. The private sector and the government need to come together in addressing the existing challenges,” Kullenberg said.
Malawi is ranked 141 out of the 189 countries on the World Bank Doing Business Index. The poor showing is partly blamed on difficulties faced by private sector players in doing business.
