The combined effects of adverse weather, acute foreign exchange shortages, disruptions to electricity, and the high rate of inflation, mean Malawi continues to face an economic slowdown, according to the latest World Bank’s Malawi Economic Monitor (MEM). It says power cuts are affecting the industrial and service sectors and high inflation the private sector and households.The 16th Edition of the Malawi Economic Monitor, titled, Planning Beyond the Next Harvest: Advancing Economic Stability and Agricultural Commercialization shows the emerging impacts of the economic crisis where higher government spending continues to widen the fiscal deficit, exerting pressure on the government’s fiscal consolidation plans. Malawi’s public debt is currently assessed to be in distress, though ongoing debt restructuring negotiations will help ensure debt sustainability over the medium term.
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