BLANTYRE – Malawi’s government has reduced its economic growth forecast for 2025 to 3.2%, down from an earlier estimate of 4.0%, according to Finance Minister Simplex Chithyola Banda’s budget speech on Friday. The downward revision comes as the country faces widespread protests over soaring prices and double-digit inflation, which reached 28.5% in January.
The protests, initially led by street vendors struggling to stay in business due to rising costs, have spread from the capital Lilongwe to the commercial hub of Blantyre. They have since drawn in unemployed youths expressing frustration with President Lazarus Chakwera’s administration.
Malawi’s economy grew by 1.8% in 2024, impacted by a severe regional drought that hurt agricultural output, a key driver of the country’s economy. The government’s revised growth outlook reflects ongoing economic challenges, including inflationary pressures and social unrest.