Malawi GDP rises by 18 percent in 5 years

Malawi gross domestic product (GDP) at 2007 constant prices is expected to rise by 18 percent from K951 billion to K1.05 trillion between 2010 and 2014, Reserve Bank of Malawi (RBM) figures indicate.

However, the data shows that at current prices, which include inflation, the country’s output will double to K2.17 trillion from K1.02 trillion within the same period.

RBM 2013 First Quarter (Q1) Financial and Economic Review further indicates that Malawi’s GDP stands at K1.84 trillion at current prices.

The anticipated growth in GDP may mean that Malawians will enjoy better and quality life however an expert argues otherwise.

Commenting on the change in GDP Chancellor College Professor of Economics Ben Kaluwa in an interview said although the change in GDP on current prices is high the rise at constant price is not impressive.

“The growth of 18 percent at constant prices over five years is too small. This would have been good news if it was an annual growth. Population growth must also be considered otherwise this might mean nothing on an individual basis,” said Kaluwa.

Malawi ‘s Human Development Index (HDI)—a composite measure of social and development including life expectancy, education, and income—stands at 0.418, ranking at 171 out of 185 countries.

The 2013 Human Development Report indicates that Malawi gross domestic income (GDI) per capita marginally improved to $774 up from $753 in the previous report.

Specifically, RBM data indicates that Malawi’s GDP is expected to grow by an average 5.2 percent between 2010 and 2014. The report further shows that the economy grew by 1.8 percent in 2012, is expected to grow by 4.9 percent and 6.1 percent in 2013 and in 2014 respectively.

Agriculture, forestry and fishing is expected to grow by an average four percent between 2010 and 2014. The sector shrunk by 2.3 percent in 2012, expected to grow by 5.4 percent in 2013, and by 6.3 percent in 2014.

Mining and quarrying—with the highest growth—will grow by an average 111 percent between 2010 and 2014. The sector grew by 14.6 percent in 2012, and is estimated to grow by 8.5 percent in 2013 and nine percent in 2014.

The report indicates that manufacturing grew by an average 2.9 percent between 2010 and 2014. The sector shrank by 1.3 percent in 2012, projected to grow by 6.2 percent this year and 5.4 percent in 2014.