Page 7 - THE 2024-25 MID-YEAR BUDGET REVIEW STATEMENT

performance. The domestic economy has been hardly hit by

weather related shocks, which have negatively affected

productivity of the Agriculture sector, the major contributor

to the country’s GDP. Thus, this August House might wish to

note that the macroeconomic parameters that we assumed

at the time of preparing the current Budget have changed

and hence this Mid-year Budget review.

11. Madam Speaker, consistent with the downturn in global

economic growth that I mentioned earlier, Malawi's growth

prospects have been equally affected. Malawi’s Real GDP

growth is now projected at 1.8 percent in 2024, a downward

revision from 2.3 percent envisaged at the start of the 2024-

25 fiscal year. Economic growth slowed down in 2024 due to

unfavorable weather conditions experienced in the previous

growing season. In 2025, growth is estimated at 4.0 percent,

a downward revision from 4.3 percent estimated at the

beginning of 2024-25 fiscal year.

12. In terms of inflation, as we are all aware, inflationary

pressure persisted in 2024, mainly influenced by rising food

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