LILONGWE (Malawi NewsNow) –Malawi’s economy growth will slow down further to 2.6 percent in 2016, the World Bank has projected.
The economic slow down will be down o to food shortages induced by El Nino which has reduced crop production in most parts of the country.
The projection, contained in the third edition of the Malawi Economic Monitor report launched Wednesday.
World Bank economic outlook contradicts Minister of Finance and Economic Planning Development, Goodall Gondwe’s projection of 5.1 percent economic growth.
The World Bank has also warned that outcomes of the expenditure controls and improved fiscal and monetary policies which the government is implementing will not have an impact on the short term economic recovery in 2016 as a result of the El-Nino induced shocks the country is undergoing.
Economics Association of Malawi (Ecama) Executive Director Edward Chilima says the country’s economy remains weak and frail.