Malawi’s economy is expected to expand by more than 4 percent in 2016 from about 3 percent last year as the country recovers from a drought caused by the El Nino weather pattern, its finance minister said.
“We don’t think the weather will be as bad this year as last. Growth could be higher than 4 percent in 2016,” Goodall Gondwe said late Monday.
In September, Malawi’s central bank forecast a growth of 5.4 percent in 2015 and 6.5 percent in 2016 after a 6.0 percent expansion in 2014, but the weather has cast doubt on those projections.
We don’t think the weather will be as bad this year as last. Growth could be higher than 4 percent in 2016.
The International Monetary Fund had in the same month said growth in 2016 would slow to 3 percent.
Agriculture accounts for almost a third of Malawi’s economy and provides the livelihood of 80 percent of the population.
Last year, the country suffered floods, then a drought that hit production of the maize crop across southern Africa.