World Bank pegs Malawi’s poverty rate at 75.4%

World Bank Malawi says following the upward revision of the international poverty line (IPL) for low-income countries, including Malawi, to $3 (about K5 253) per person per day, Malawi’s poverty rate now stands at 75.4 percent.

Under the previous IPL of $2.15 (about K3 764) per person per day, the poverty rate using the same data was 70.1 percent, according to the bank.

In a statement made available to Business News on Wednesday following publication of a story on the PIL revision, the World Bank Group senior economist Lina Cardona said while the new  poverty line affects the level of measured poverty, it does not change the trend.

She said: “In other words, the revision of international poverty line reflects two key changes; inflation between 2017 and 2021, which raises the line from $2.15 to approximately $2.50 [about K4 377] and improvements in how consumption is measured across low-income countries, which increases the line further from $2.50 to $3 per day.

“These improvements in measurement have led to higher recorded consumption, thereby increasing the consumption threshold, even if actual living standards have not changed, which means that, all else equal, more people fall short of the line.”

On Tuesday, Economics Association of Malawi president Bertha Bangara-Chikadza observed that while Malawi’s national poverty line based on local costs of basic needs remain unchanged, the revised global lines highlight a starker gap between Malawi’s economic reality and international benchmarks.

“This has implications on Malawi’s long-term vision, which aims to transform the country into a wealthy, self-reliant and upper-middle-income economy by 2063.”

National Planning Commission acting director general Joseph Nagoli, whose organisation offers oversight role in the implementation of of MW2063, said the change in poverty line does not affect the country’s graduation to a middle income status by 2063.

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