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Malawi Economic Monitor : Strengthening Human Capital Through Nutrition (English)

With Malawi’s economic growth recovering and single digit inflation, the Government has a keyopportunity to rein in fiscal deficits and reduce domestic debt. If it can better control domestic debt levels, the Government could increasingly move towards creating the conditions for the privatesector to increase investment, which can drive growth and job creation. To support this, the Government needs to develop a track record of achieving sustainable fiscal deficits in order to contain and reverse the escalating domestic debt burden, to contain interest rates and avoidcrowding out private sector investment, and to increase public investment. Malawi’s economy is projected to grow by 4.4 percent in 2019, up from 3.5 percent in 2018. Agricultural activity rebounded in 2019 due to favorable weather conditions, which offset the negative effects from Tropical Cyclone Idai in parts of the southern region of the country. Crop production was generally strong, particularly in the case of maize, with production increasing by 25.7 percent. This supported overall economic growth, despite a decline in tobacco production. However, the ongoing political impasse, with widescale demonstrations that have continued since May 2019, has constrained business activity and increased uncertainty, weighing on investment. The Government missed the revised fiscal deficit target in FY2018/19. The fiscal deficit increased to 6.5 percent of GDP, higher than the revised target of 5.8 percent. The impact of election-related expenses,increased interest payments and costs associated with the disaster response pushed recurrentexpenditure beyond targeted levels by 1 percent of GDP. This was partially offset by under-execution of development expenditure, which was not enough to keep the fiscal deficit to 5.8 percent of GDP. Poor revenue performance, which was lower by 0.5 percent of GDP, compounded the problem.

Details

  • Author

    Hettinger,Patrick Shawn

  • Document Date

    2019/12/01

  • Document Type

    Report

  • Report Number

    144290

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Malawi,

  • Region

    Africa,

  • Disclosure Date

    2020/06/30

  • Disclosure Status

    Disclosed

  • Doc Name

    Malawi Economic Monitor : Strengthening Human Capital Through Nutrition

  • Keywords

    fiscal deficit; domestic debt; inflation; access to family planning services; high levels of market concentration; access to safe drinking water; Infant and Young Child Feeding; maternal and child health; Cost of Doing Business; Maternal and Child Mortality; efficiency of education spending; complete basic education; post disaster needs assessment; real effective exchange rate; Below the Poverty Line; transmission of monetary policy; increase in tax revenue; maternal and child nutrition; efficient allocation of resource; income generating activity; income-generating activity; food price; digital technology; withholding tax; lack of competition; current account deficit; high fertility rate; million people; cost of service; hydro power plant; public domestic debt; human capital development; investments in agriculture; private sector credit; agriculture sector; weather condition; commodity price; income earning opportunities; inadequate food intake; child nutrition indicators; adolescent fertility rate; base lending rate; impact of flood; availability of seed; childbearing among adolescents; social protection system; net domestic borrowing; global economic prospect; risk of debt; pregnancy among adolescents; investment and services; demand for health; safety net program; access to food; Social Safety Nets; national policy priority; child care center; human capital formation; people with disability; solar power plant; stable exchange rate; allocating public resources; Boosting Growth; wages and salary; total tax revenue; investment in technology; put pressure; international oil price; domestic debt burden; increase in expenditure; lack of investment; price and quality; expenditure on good; sustainable fiscal deficit; domestic revenue collection; individual income tax; fiscal deficit target; improvements in water; high tax burden; sale of share; child growth pattern; Deferred Drawdown Option; trade and investment; digital development; senior operations; lower interest rate; taxes on goods; Job Creation; job opportunities; global growth; external condition; household level; childhood nutrition; fiscal discipline; nutritional status; population group; job opportunity; agriculture production; fixed investment; good performance; debt sustainability; coping strategy; recent years; increased volatility; food insecurity; maternal nutrition; fiscal account; real gdp; healthy environment; adolescent girl; interest expenses; rural area; fiscal risk; digital dividend; recent months; national gdp; market segment; expenditure overrun; carbon tax; recent development; trade tensions; political uncertainty; budget support; specific taxes; commercial bank; financial inclusion; mobile money; complementary feeding; Antenatal Care; custom duty; weather shock; agricultural productivity; budget levels; crop production; community level; increase growth; decomposition analysis; power supply; dry spell; intergenerational transmission; export crop; women's health; moderate poverty; small children; remote area; Tax Reform; auction sale; available resources; budget revenue; geographical area; tobacco exports; capital allowance; banking sector; output level; climate variability; corporate tax; program leader; tax from october; children of ages; rental income; import product; diarrheal disease; tea prices; body mass; social index; external demand; lower price; cognitive development; maternal education; physical capacity; deaths globally; productivity level; good sanitation; excess stock; sugar production; increased supply; child stunting; foreign finance; cooking oil; prevalence rate; fertilizer subsidies; pregnancy complication; export tariff; weight gain; increased export; poor household; tax system; supply side; fiscal space; fiscal revenue; global financial; domestic arrears; regional risk; Capital Inflows; International Trade; high debt; high performance; public consumption; commodity producer; public finance; tax collection; maize production

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Citation

Hettinger,Patrick Shawn

Malawi Economic Monitor : Strengthening Human Capital Through Nutrition (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/403401576093803229/Malawi-Economic-Monitor-Strengthening-Human-Capital-Through-Nutrition