Economic experts have predicted continued hostile business environment in short to medium term as the country is preparing for a fresh presidential election.
This follows the last week’s constitutional court ruling which ordered fresh presidential election months after UTM and MCP leaderships petitioned it on the disputed 2019 polls which declared President Peter Mutharika winner.
Last year’s elections slowed down business operations significantly as shops were closed due to election-related pressure post the polling day.
Speaking to MIJ a week after the ruling, a Blantyre based Economist Sam Chiwaula said this will prolong the hostile business environment until after the fresh election’s outcome.
“It will take some time before the business operating environment improves because we are already coming from a period where politically influenced protests were slowing down business activities in strategic cities. With the recent ruling, the environment will remain gloomy until after the fresh election outcome,” added Chiwaula.
He Chiwaula has, however, said the impacts of the fresh election will be manageable sees authorities revising downwards the economic growth forecasts due to the anticipated slowness in business activities.
Stakeholders revised downwards the country’s economic growth for 2019 from 5% to around 4% and experts are skeptical of the government’s 2020 GDP growth projection of close to 6%.