BMI maintains a particularly bearish outlook for vehicle sales in Malawi in 2013, forecasting a 16.3% decline in total sales and 22% drop in passenger car sales. We believe things will improve (we forecast total annual sales growth will average 4.7 in 2014-2017, with annual passenger car sales growth averaging 1.7%). However, we believe that the macroeconomic picture is becoming increasingly poor – predicated on rampant inflation, the rapidly depreciating local currency, and high interest rates – which will curb sales growth. Food insecurity has caused the price of maize to climb, and resulted in long queues for the little …
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