Malawi but once more, didn’t tame its urge for food for overseas merchandise in 2024, evidenced by a 6.3 % widening in its commerce deficit.
A trade deficit happens when a rustic’s imports exceed exports.
Latest figures from the National Statistical Office (NSO) present a gentle rise in Malawi’s commerce deficit, the place, in 2022, it was recorded at -$2.10 billion, which worsened to -$2.17 billion in 2023.
The commerce deficit was additional recorded at -$2.31 billion in 2024 representing a 6.3 % soar when in comparison with 2023 figures.
This is stemming from a corresponding enhance in imports. For instance, in 2022, complete imports amounted to $2.99 billion which rose to $3.14 billion in 2023.
Further, imports surged to $3.26 billion in 2024.
However, Malawi’s exports, whereas growing, have remained minimal, recorded at $863.67 million in 2022, $919.8 million in 2023, and $927.3 million in 2024. Meanwhile, a January 2025 commerce bulletin revealed not too long ago by the NSO signifies that there was progress in each exports and imports.
According to the bulletin, complete exports for January 2025 amounted to $126.7 million, exhibiting a 221.6 % progress in comparison with $39.4 million in January 2024.
It additional signifies that complete imports elevated from $224.2 million in January 2024 to $273.5 million in January 2025 reflecting a 22 % enhance.
“As exports grew at a faster rate than imports, the trade deficit narrowed to $146.8 million in January 2025, down by 20.5 percent from $184.7 million in January 2024. The export-to-import ratio was 0.46, indicating that exports were equivalent to 46 percent of the value of imports in January 2025,” the bulletin reads.
In an interview, Economics Association of Malawi President Bertha Chikadza stated such traits could be tamed by implementing measures aimed toward growing exports and decreasing imports, or each.
“The 2025-26 budget has outlined some measures aimed at increasing exports and reducing imports. Such measures include incentivising production, supporting export diversification, including high valued products sectors and digital export trade,” Chikadza stated.
Economist Marvin Banda stated the import and export portfolio paints an image of a nation which although is in financial peril nonetheless insists on transacting in items that aren’t pertinent to financial restoration and progress.
“Trade tariffs have to be placed on imports that the nation has competing substitutes in order to excite the use of Malawian made products,” Banda stated.
Presenting the 2025-26 nationwide finances assertion in Parliament final week, Minister of Finance Simplex Chithyola Banda stated Malawi has to supply and export to guard overseas change reserves.