Malawi’s government has lowered its 2025 economic growth forecast to 3.2% due to rising inflation and public protests. Citizens, including street vendors and unemployed youth, are demonstrating against the government’s inaction on economic issues, which is exacerbated by a previous drought that impacted agricultural output. January’s inflation rate was reported at 28.5%, highlighting ongoing financial distress.
The government of Malawi has revised its economic growth outlook for 2025, decreasing it from 4.0% to 3.2% as indicated in the recently released annual budget. This adjustment comes in response to widespread protests among citizens over escalating prices and rampant inflation, which have particularly affected street vendors who claim the government has not taken adequate measures to address these financial tensions.
Protests initially emerged in the capital, Lilongwe, and have now extended to major urban areas including Blantyre, gathering supporters from various demographics, especially unemployed youth expressing discontent with President Lazarus Chakwera’s administration. The country’s growth was already hindered in the previous year, with an estimated rate of only 1.8% due to a severe drought that adversely impacted agricultural production, a critical sector of the economy.
As reported, the latest inflation rate reached 28.5% as of January, further burdening citizens and sparking calls for government accountability. This financial climate has intensified public frustration and unrest, prompting urgent governmental reassessment of economic strategies.
In summary, Malawi’s economy faces significant challenges with the revised growth forecast reflecting broader implications from high inflation rates and public unrest. Protests by street vendors and jobless youth underscore the urgent need for effective government action to stabilize the economy. Historical factors, including last year’s drought, continue to affect growth prospects as citizens demand accountability from their leaders.
Original Source: www.usnews.com
