Malawi’s government has reduced its 2025 economic growth forecast from 4.0% to 3.2% amid widespread protests over soaring inflation. Street vendors and unemployed youth are leading the demonstrations, expressing frustration with the government’s inability to manage double-digit inflation. Last year’s growth was impacted by a drought, and January’s inflation rate stood at 28.5%.
Malawi’s government has revised its economic growth forecast for the year 2025, reflecting ongoing challenges posed by rising prices. Recent demonstrations in major cities, primarily led by street vendors, highlight public dissatisfaction over double-digit inflation that threatens their livelihoods. The protests, initiated in the capital Lilongwe, saw participation from jobless youths expressing frustrations toward President Lazarus Chakwera’s administration.
Finance Minister Simplex Chithyola Banda announced a growth forecast of 3.2% for 2025, a reduction from the previous estimate of 4.0% made in December. This adjustment follows a difficult year where economic growth was pegged at just 1.8%, primarily due to a severe regional drought that negatively impacted the agricultural sector, a crucial component of the economy.
According to recent data, inflation reached 28.5% in January, marking a significant increase that contributes to the rising costs of living. The government’s economic strategies and reliance on foreign aid remain under scrutiny as public discontent rises over the handling of the economic situation.
In summary, Malawi’s economic outlook for 2025 has been downgraded due to escalating inflation and widespread public protests. The government’s struggle to manage inflation, particularly its impact on vulnerable groups like street vendors, has ignited social unrest. The situation underscores the critical challenges facing Malawi’s economy, including agricultural dependencies and the need for effective governance against rising prices.
Original Source: www.usnews.com
