By Chisomo Phiri
The Economics Association of Malawi (ECAMA) has warned that the World Bank’s upward revision of the International Poverty Line (IPL) for low-income countries will push many Malawians into abject poverty.
IPL is a monetary threshold used to determine an ‘adequate’ level of income.
If a person falls under that threshold, they’re considered to be living in poverty.
The World Bank has revised the threshold to $3,approximately K5,000) per person per day from the previous K3,764.
In an interview with 247 Malawi News,ECAMA President Bertha Bangala Chikadza said this signals tough economic times ahead and urged the government to implement measures to cushion the impact on Malawians.
Asked to comment on the same, Youth Support for Social Advancement (YOSSA) Programs and Communications Officer Clement Magombo noted that the adjustment reflects the rising cost of living and highlights the ongoing economic challenges faced by vulnerable communities.
National Planning Commission(NPC) acting Director General (DG ) Joseph Nagoli, whose organisation offers oversight role of MW2063, said the change in IPL does not affect the country’s graduation to a middle income country status.
World Bank data shows that Malawi’s Gross Domestic Product (GDP) per capita stands at $602.3 (about K1 million) as of 2023, far below that of the lower middle-income economy of $1 146 (about K2 million) and higher income economies of $14 005 (about K25 million).
With this GDP per capita, Malawi has a poverty rate of 70.1 percent, but going by the higher income GDP per capital standing, the poverty rate in Malawi would be at 97.3 percent, according to the World Bank.
The IPL was last updated in 2022.
