IMF sees 4.5% economic growth for Malawi on improved Agric production, cyclone Idai recovery

The International Monetary Fund (IMF) has said Malawi’s economy is likely to expand by 4.5 percent this year.

The economic boost, the fund said will be due to improved agricultural production and the rebuilding of infrastructure damaged by Cyclone Idai.

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The growth projection is however down slightly from the fund’s March forecast of a 5 percent expansion to gross domestic product.

Earlier in September the finance ministry said growth would advance 5 percent up from 4 percent growth in 2018.

The small southern African nation’s economy is largely reliant on sales of tobacco, tea and sugarcane, with growth having slowed in recent years because of an El Nino-induced drought, electricity shortages and political uncertainty.

Cyclone Idai, the worst cyclone in Africa for decades, lashed Mozambique, Zimbabwe and Malawi in March, killing thousands and wrecking infrastructure.

“Over the medium term, growth could rise further to 6-7%, backed by greater access to finance, crop diversification, an improved business climate and more resilient infrastructure, including improved electricity generation,” the IMF said in a statement.

In April last year the IMF granted Malawi a $112 million credit facility to help the country to stabilise debt and fight poverty.