A statement by the International Monetary Fund (IMF) has stated that Malawi’s economy looks uncertain, considering the coronavirus outbreak and the current political tension towards the presidential election.

The statement outlines that the success of the economy in 2020 will depend on the extent of transmission to Malawi, coupled with the magnitude of associated global and regional economic spillovers. The statement follows prior reports by the Reserve Bank of Malawi, which had a positive outlook for the economy, citing bumper harvests in Maize. However, IMF Mission Chief for Malawi, Pritha Mitra, said despite threats posed by the pandemic and the tense political environment, the economy may grow in the medium to long-term. “With the evolution of the Covid-19 outbreak still largely unknown, the economic outlook is subject to substantial uncertainty.

The recent strong agricultural harvests and reconstruction activity after Cyclone Idai have boosted growth but the growth path for the remainder of the year will depend on the extent of transmission to Malawi of Covid-19 and the magnitude of associated global and regional economic spillovers.