LILONGWE – Malawi will cut its forecast for economic growth of 4,3% this year due to contraction in some major sectors, Finance minister Ken Lipenga said on Wednesday.
Report by Reuters
“Our preliminary assessment shows that the economic performance will slow down below our earlier projection of 4,3% largely due to a significant contraction in agriculture, manufacturing, forestry and fishing, which have experienced a negative growth,” Lipenga said.
Lipenga would not give a revised growth projection figure. But he remained optimistic the economy would recover strongly in 2013 with agriculture, manufacturing and the retail sectors leading the way.
The Southern Africa country’s economy had been on a tailspin earlier this year due to a disastrous fight former late President Bingu wa Mutharika picked with international donors, who withheld aid that traditionally accounted for about 40% of the National Budget.
New President Joyce Banda has worked to restore aid flows and undo several policies that led to a foreign exchange shortage that drove up the costs in the kwacha currency for essentials such as petrol, food and pharmaceuticals.-
