A paper published by the International Monetary Fund (IMF) points out that Malawi could be losing almost one percent of its gross domestic product (GDP) per capita due to climate change. The paper titled ‘Long–Term Macroeconomic Effects of Climate Change: A Cross Country Analysis’, says that the continuous changes in climate change have a long-term negative impact on Malawi’s economic growth. According to the IMF study,’ persistent increase in average global temperature by 0.04 degree Celsius per year, in the absence of mitigation policies reduces real GDP growth per capita.”
Malawi’s GDP per capita remained has remained stagnant and minimal at about $400 (about K296 000) per person per year. It is the lowest in the region when compared to other countries in the region such as Zambia, Rwanda, Kenya, and Ethiopia. Any further decline in the GDP per capita could worsen poverty levels in Malawi.
Malawi authorities have cited climate as the major contributor as all recessions have been preceded by droughts. Agriculture is the dominant sector in terms of contribution to economic growth, climate change shocks have led to volatility in the key macroeconomic fundamentals. Some steps are being taken by the government to counter climate change effects. Adapt plan Project is one among them. The Project included a set of community-led activities to act as a cushion to neutralise challenges in the wake of the negative climate change impacts. They focus largely on the promotion of sectors like agriculture, forestry, and water.
