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Laboratoire de la finance africaine

Malawi

Aperçu 2023
Annual current GDP growth (%) : 2.27
GDP (USD billions) : 12.008
Population (Thousands) : 22.093 
Sociétés Cotées à Malawi Stock Exchange
Economic performance and outlook

Growth in Malawi’s economy decelerated in 2020 to 1.7% from 5.7 % in 2019. The slowdown in GDP growth was driven by the outbreak of COVID–19, which necessitated a partial lockdown of the economy, resulting in subdued economic activities—mainly in tourism, the accommodation and food subsectors, transportation, and agriculture. Other sectors affected by disruptions from the COVID–19 pandemic disruptions were manufacturing and mining and quarrying. Weak global demand hurt Malawi’s tobacco and other agricultural exports, and inflows of foreign direct investment (FDI). The fiscal deficit was an estimated 7.7% in 2020, a deterioration from 4.7% deficit in the previous year. The deterioration was driven by $345 million in spending to respond to the pandemic, interest payments amounting to 5.3% of GDP, and a rerun of the 2019 presidential election. The fiscal deficit pushed the debt-to-GDP ratio to 65% in June 2020 from 62% in 2019 and was financed by borrowing and budget support. Monetary policy was accommodative to support recovery from the pandemic. The policy rate was reduced to 12% by November 2020 from 16% at the start of the year. Although the foreign exchange market experienced some pressures caused by COVID–19, average annual inflation decreased to 8.8% in 2020 from 9.4% in 2019, mainly because of reduced fuel prices implemented as part of COVID–19 response measures. The current account deficit worsened to 13.3% of GDP ($1.64 billion) in 2020 because of a decline in exports, tourism receipts, and investment inflows. International reserves stood at 3.1 months of imports in 2020, supported mainly by budget support receipts. The financial sector remained stable and capitalized, with the ratio of non-performing loans improving marginally to 5.4% in June 2020 from 5.6% in December 2019. Private sector credit growth declined to about 16.9% in October 2020 from 17.7% a year earlier. (Download detailed Analysis Source : Report African Economic Outlook 2021 ; AfDB)

Financial markets

At the end of 2016, the banking sector represented a total asset of $ 1.7 billion.
Credit distributed to businesses represents $0.53 billion and, more broadly, credit to private sector totaling $0.59 billion.

At the end of 2017, The Malawi Stock Exchange accounted 14 listed companies, representing a market capitalization of $ 1.37 billion.