Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances
After several months of low COVID-19 case numbers, Malawi is facing a fourth wave. While an increasing share of the global population is protected by vaccines, only about 6.5 percent of the population is vaccinated in Malawi, increasing the country...
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World Bank, Lilongwe
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/099505012202128779/P1750200ec25370fa08b4205261a47aa4ce http://hdl.handle.net/10986/36747 |
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okr-10986-367472021-12-22T05:11:23Z Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances World Bank ECONOMIC GROWTH CORONAVIRUS COVID-19 PANDEMIC IMPACT MACROECONOMIC IMBALANCE GENDER GAPS INCLUSIVE GROWTH COMMODITY PRICES FISCAL TRENDS EXTERNAL DEBT EXCHANGE RATE MONETARY POLICY BANKING SECTOR After several months of low COVID-19 case numbers, Malawi is facing a fourth wave. While an increasing share of the global population is protected by vaccines, only about 6.5 percent of the population is vaccinated in Malawi, increasing the country’s vulnerability to the virus. The Government response to the third wave was less stringent than in previous waves and businesses began adapting to COVID-19 restrictions. Thus, overall, it had less of an economic impact than in earlier waves. However, with cases accelerating rapidly in mid-December, Malawi is beginning a fourth wave of infections induced by the Omicron variant, and the Government has modestly tightened restrictions. Economic growth is projected to pick up from 0.8 percent in 2020 to 2.4 percent in 2021, primarily driven by one-time increases in the agricultural sector. With a population growth rate around 3.0 percent, however, this level of economic growth equates to a contraction in per capita output. Favorable weather, as well as increased fertilizer use due to the Affordable Inputs Program (AIP), led to record harvests. While agriculture accounts for the bulk of overall growth, growth in services and industry sectors has improved but remains tepid. With less stringent social distancing policies, demand is improving from low levels. However, the private sector still faces multiple concerns which weigh on performance and investment. These include limited availability of foreign exchange, compulsory liquidation of foreign exchange, inflation on imported items (particularly fuel), perceptions of heavy taxation, limited credit, and cumbersome regulation. Headline inflation has increased to double digits in November and recent price increases have heightened concerns about the cost of living. 2021-12-21T16:00:20Z 2021-12-21T16:00:20Z 2021-12 Report http://documents.worldbank.org/curated/undefined/099505012202128779/P1750200ec25370fa08b4205261a47aa4ce http://hdl.handle.net/10986/36747 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Lilongwe Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling Africa Africa Eastern and Southern (AFE) Malawi |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH CORONAVIRUS COVID-19 PANDEMIC IMPACT MACROECONOMIC IMBALANCE GENDER GAPS INCLUSIVE GROWTH COMMODITY PRICES FISCAL TRENDS EXTERNAL DEBT EXCHANGE RATE MONETARY POLICY BANKING SECTOR |
| spellingShingle |
ECONOMIC GROWTH CORONAVIRUS COVID-19 PANDEMIC IMPACT MACROECONOMIC IMBALANCE GENDER GAPS INCLUSIVE GROWTH COMMODITY PRICES FISCAL TRENDS EXTERNAL DEBT EXCHANGE RATE MONETARY POLICY BANKING SECTOR World Bank Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| geographic_facet |
Africa Africa Eastern and Southern (AFE) Malawi |
| description |
After several months of low COVID-19
case numbers, Malawi is facing a fourth wave. While an
increasing share of the global population is protected by
vaccines, only about 6.5 percent of the population is
vaccinated in Malawi, increasing the country’s vulnerability
to the virus. The Government response to the third wave was
less stringent than in previous waves and businesses began
adapting to COVID-19 restrictions. Thus, overall, it had
less of an economic impact than in earlier waves. However,
with cases accelerating rapidly in mid-December, Malawi is
beginning a fourth wave of infections induced by the Omicron
variant, and the Government has modestly tightened
restrictions. Economic growth is projected to pick up from
0.8 percent in 2020 to 2.4 percent in 2021, primarily driven
by one-time increases in the agricultural sector. With a
population growth rate around 3.0 percent, however, this
level of economic growth equates to a contraction in per
capita output. Favorable weather, as well as increased
fertilizer use due to the Affordable Inputs Program (AIP),
led to record harvests. While agriculture accounts for the
bulk of overall growth, growth in services and industry
sectors has improved but remains tepid. With less stringent
social distancing policies, demand is improving from low
levels. However, the private sector still faces multiple
concerns which weigh on performance and investment. These
include limited availability of foreign exchange, compulsory
liquidation of foreign exchange, inflation on imported items
(particularly fuel), perceptions of heavy taxation, limited
credit, and cumbersome regulation. Headline inflation has
increased to double digits in November and recent price
increases have heightened concerns about the cost of living. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| title_short |
Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| title_full |
Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| title_fullStr |
Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| title_full_unstemmed |
Malawi Economic Monitor, December 2021 : Addressing Macro and Gender Imbalances |
| title_sort |
malawi economic monitor, december 2021 : addressing macro and gender imbalances |
| publisher |
World Bank, Lilongwe |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/099505012202128779/P1750200ec25370fa08b4205261a47aa4ce http://hdl.handle.net/10986/36747 |
| _version_ |
1764485846816260096 |