Economic activity pushedup growth in 2021—RBM

 The Reserve Bank of Malawi (RBM) says recovery in the just-ended year pushed up domestic real economic activity in a number of sectors.

In its Monetary Policy Report issued on Friday, RBM said recovery was in part a result of the pick-up in local and cross-border economic activity following global efforts in the administration of the Covid-19 vaccinations, which has reduced the incidences of lockdown restrictions.

“The sectors with notable improvements were accommodation and food, transportation, wholesale and retail and manufacturing sectors,” reads the report in part.

In an interview on Sunday, Indigenous Business Association of Malawi president Mike Mlombwa while indicating that the economy was better in 2021 compared to 2020, said businesses still faced some challenges.

He said: “The easing of the measures instituted to curb the Covid-19 pandemic during the year opened up doors for businesses to trade and this explains the pick-up in activity.

“Nonetheless, access to finance and forex were an issue of concern in the year which affected our ability to boost our businesses.”

Cross-border Traders Association of Malawi president Steve Yohane said traders who have been affected by Covid-19 saw an improvement in 2021.

“Unlike in 2020 when the Covid-19 pandemic was just discovered, 2021 was slightly better as people seemed to have learnt to live with the pandemic and found ways to make trading possible regardless of the pandemic,” he said.

In its assessment for 2021, Malawi Confederation of Chambers of Commerce and Industry indicated that 2021 was characterised by a number of developments in the business operating environment from tentative economic recovery to resurgent uncertainty.

MCCCI is, however, upbeat that the two-year K500 billion Social Economic Recovery Plan would go a long way in offsetting some of the challenges and economic risks.

Two weeks ago, economist Milward Tobias, who is executive director of the Centre for Research and Consultancy, said economic growth projections this year are off target because of the devastating Tropical Storm Ana in the Southern Region and persistent Covid-19.

He said the planned K500 billion recovery budget is now less as there is another crisis from the natural disaster.

Economics Association of Malawi executive director Frank Chikuta said weather-related shocks and pandemics are outside government control.

“To attain 4.1 percent growth rate depends on what government will do in terms of economic policy measures because reasonable growth figures are attainable depending on policies,” he said