Mining, ICT to anchor GDP growth—report
Mining and information and communications technology (ICT) sectors are expected to be among the key anchors of gross domestic product (GDP) growth in 2024 and 2025, according to the 2024 Malawi Government Annual Economic Report.
The report says the manufacturing sector, which is one of the key sectors to enable Malawi achieve its aspirations outlined in Malawi 2063, the country’s long-term development plan, is also expected to rebound from negative growth.
Among others, the report projects that several sectors will perform well thanks to recent improvements in electricity and fuel supplies to support the country’s GDP growth rate forecast of 3.2 percent in 2024 and 4.8 percent in 2025.
In an interview yesterday, National Working Group on Trade Policy chairperson Fredrick Changaya said although the manufacturing sector could build on some improvements in business environment such as electricity and fuel, there is need for authorities to ensure fiscal and monetary policies are in line with growth objectives.
He said: “The Ministry of Finance is right to hope for a rebound in this important sector whose contribution to the GDP has stalled for decades.
“However there is a lot to be done at policy and implementation level. The agriculture, tourism and mining strategy is a good approach.”
Changaya said the country is still using traditional tool kit for policy based on targeting inflation instead of modern innovative models that engineer the inflation the country wants.
In an earlier statement, the Malawi Confederation of Chambers of Commerce and Industry described the 3.6 percent growth projection as unrealistic considering the current business environment.
