Govt Attributes Slow Economic Growth To Power Outages

Government has admitted that delayed recovery of power generation will put constraints on the 2018 growth prospects, which has been projected at 4.5 percent.

According to the published 2018 Economic and Fiscal Policy Statement by the Ministry of Finance, Economic Planning and Development, this is on top of subdued growth anticipated from the agricultural sector which is slower that last year.

“Agricultural growth is anticipated to be slower than last year due to the low crop yield, especially for maize following the effects of fall armyworm infestation and dry spells during the early part of the growing season. Growth prospects are also constrained by delayed recovery of

power generation,” reads the statement in part.

“It is however expected that tight monetary conditions and continuing disinflation on most non-food items will contain inflation into single digits up to the end of 2018 and beyond.”

Government is, however, banking on non-agricultural economy, tobacco production, exports, and investment in infrastructure to drive growth.

Minister of Finance, Economic Planning and Development, Goodall Gondwe, was adamant on the country registering an economic growth of over 5 percent despite acknowledging the possible threat for the economy created by increasing power outages.