Malawi Economic Monitor, June 2021 : Investing in Digital Transformation
Malawi was affected by a severe second wave of COVID-19 (coronavirus) cases starting in the last weeks of 2020. As a result, the Government declared a second 'State of National Disaster' and announced increased social distancing measures....
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Lilongwe
2021
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/131501624458623473/Malawi-Economic-Monitor-Investing-in-Digital-Transformation http://hdl.handle.net/10986/35880 |
| Summary: | Malawi was affected by a severe second
wave of COVID-19 (coronavirus) cases starting in the last
weeks of 2020. As a result, the Government declared a second
'State of National Disaster' and announced
increased social distancing measures. Case numbers peaked in
January and gradually subsided through April, when
restrictions were relaxed. Malawi received its first
consignment of vaccination doses from COVAX in March, but
uptake has been low, with around 400,000 doses administered
to about 2 percent of the population as of mid-June. Growth
in 2020 was strongly affected by the pandemic, falling to an
estimated 0.8 percent, down from pre-pandemic projections of
4.8 percent. The pandemic’s impact on the services and
industry sectors was partially offset by a strong
agricultural harvest. Services and industry slumped amid the
ongoing disruptions caused by the pandemic to global value
chains and trade and logistics, decreases in tourism and
remittances, and dampened demand due to social distancing
measures. The accommodation and food services subsectors
were the most affected, while information and communication
services, and utilities performed well. Agricultural
production estimates for 2021 are strong, but the pandemic
will still weigh on economic activity. Maize production is
expected to increase to 4.5 million tons, a 17 percent
increase over 2020’s bumper harvest. Business sentiment is
showing some improvement in early 2021 but is still below
pre-pandemic levels. Some 46 percent of firms surveyed in
February 2021 by the Malawi Confederation of Chambers of
Commerce and Industry (MCCCI) expect a positive performance
for the year. This is an improvement from 31 percent in 2020
but remains short of pre-pandemic levels. |
|---|