WEATHER INCONSISTENCIES TO AFFECT ECONOMY -AfDB – Malawi News Online

In its July 2019 Working Paper Series for Malawi, the African Development Bank (AfDB) says persistent adverse weather shocks in the country could lead to hyperinflation, escalating debt ratios and reduced economic growth if not well managed.

“In particular, the economy is not sufficiently diversified and is highly dependent on rain-fed agriculture, a major source of vulnerability and a possible impediment to the attainment of Malawi’s growth and development prospects,” reads the analysis in part.

On the the other hand, the World Bank says poverty is driven by poor performance of the agriculture sector, a volatile economic growth together with a population growth and limited opportunities in non-farm activities, as figures show that in 2018, growth of Malawi’s real gross domestic product (GDP) was projected to have moderated to 3.5% from 4% in 2017 due to lower output in agriculture caused by dry spells and fall armyworm. The Bank said, using that example, that Malawi is overdependent on agriculture and will suffer since the sector is dependent on favorable weather conditions, which are not always not guaranteed.