Malawi has adjusted its 2025 growth forecast to 3.2%, down from 4.0%, as citizens protest against rising inflation. The discontent is primarily among street vendors and unemployed youths who blame the government for failing to manage the economic crisis. Last year’s growth was only 1.8% due to severe drought conditions. Inflation stands at 28.5%.
The government of Malawi has revised its economic growth forecast for the current year in response to escalating public discontent stemming from rising prices. The latest annual budget released indicates a reduction in the predicted growth rate from 4.0% to 3.2% for 2025. This downward adjustment occurs amid widespread protests in major cities as citizens, particularly street vendors, express dissatisfaction with the administration’s inability to manage inflation, which has reached alarming levels.
In summary, Malawi’s economic outlook has deteriorated due to high inflation affecting citizens’ livelihoods, prompting widespread protests. The government’s revised growth forecast reflects a challenging economic environment, compounded by the repercussions of last year’s drought, which negatively impacted agricultural productivity—the backbone of the nation’s economy. Continuous public dissent may necessitate governmental action to address these pressing economic concerns.
Original Source: www.usnews.com
