BLANTYRE (Reuters) – Malawi has cut its 2022 growth forecast to 1.7% from 4.1%, finance minister Sosten Gwengwe said in a mid-year budget speech on Friday.
“Consistent with the downturn in global economic growth … Malawi’s growth prospects have been equally affected,” Gwengwe said.
“Malawi’s Real GDP growth is projected at 1.7 percent in 2022, a downward revision from 4.1 percent envisaged at the start of the 2022/23 fiscal year.”
In 2023, growth is estimated at 2.6%, he said.
Apart from the global economic downturn, growth in Malawi has been further hampered by Cyclone Ana which damaged Kapichira hydro power station thereby taking 129.6 megawatts off the national power grid, which has affected economic activity.