Stagnant growth, unsustainable debt, and the adverse effects of multiple shocks, including an outbreak of cholera and Cyclone Freddy last year, have compounded Malawi's economic challenges. Feb 2, 2024
Malawi faces continued challenges of deforestation, constrained water resources, declining fisheries, limited institutional capacity to manage natural resources, and farming practices that lead to soil erosion and reduced fertility, among others.
Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks.
Poverty in Malawi is caused by various factors. Many of these are constraints on the economic productivity of land, labor, capital, and technology. Constraints on the productivity of land include rapid environmental degradation and limited or inadequate access to land.
Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth.
With limited availability of external financing and high levels of domestic borrowing, public debt continues to rise, resulting in debt servicing requirements in excess of 35% of revenues.
Norb Leahy, Dunwoody GA Tea Party Leader
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