By Burnett Munthali
Malawi’s growing appetite for imported goods significantly widened its trade deficit, which surged by 55.1 percent, as exports shrank over the past year.
According to the International Merchandise Trade Statistics published on Monday, 25 November 2024, by the National Statistical Office (NSO), total imports in October 2024 rose to $288.5 million, marking a 9.1 percent increase from $264.4 million in October 2023.
Conversely, the report revealed a steep decline in total exports, which dropped by 36.4 percent from $133 million in October 2023 to $84.6 million in October 2024.
The trade imbalance has further expanded, with the NSO reporting a deficit of $203.9 million in October 2024, compared to a deficit of $131.5 million during the same period last year.
This growing trade gap has exacerbated Malawi’s persistent forex shortages, a situation that has significantly contributed to the country’s ongoing fuel crisis. Experts have warned that without measures to boost exports and manage imports, the economic strain is likely to worsen.
The NSO’s report underscored the urgent need for Malawi to diversify its export base and reduce reliance on imports to stabilize the economy and address the widening trade deficit.
