Malawi’s average income per capita goes up

The International Monetary Fund (IMF) says Malawi registered real per capital Gross Domestic Product (GDP) of $178 last year which signals improved income levels per each Malawian  in 2011.

Based on these numbers,  it means each Malawian would earn $178 (or K44,500 based on the current ruling exchange rate) if the country’s total wealth as measured by GDP, was to be shared equally in 2011.

But such a real per capita income is an improvement from $174, $168 and $158 which were realised in the year 2010, 2009 and 2008, respectively.

Between 2004 and 2008, Malawi achieved an average per capita GDP of $147 according to the IMF.

“If you look at such a trend it simply means that Malawi is making strides to ensure growing its economy despite several negative economic forces that are pulling growth downwards and this is good for the entire livelihood of citizens,” said a Lilongwe-based macroeconomist working with ministry of finance.

However, despite all this, Malawi still sits at the bottom of a group of low income countries within Sub-Saharan Africa in terms of average real per capita GDP.

“2011 was a challenging year for most countries just like Malawi. Terms of trade shocks where heightened and also prices for tobacco were low. In addition, we saw a stand-off in aid by donors,” said IMF resident representative Ruby Randall.