Malawi’s private sector credit growth is increasingly being driven by household borrowing rather than productive investment, a shift economists warn could weaken long-term growth prospects and intensify inflationary pressures. By November, the sector accounted for 40 percent of total outstanding private sector credit, overtaking agriculture and manufacturing, according to the data. Agriculture’s share declined to 19.6 percent from 24 percent mid-year while manufacturing credit fell from a September peak of 23 percent to 19.9 percent in November. Mbukwa said household credit adds to demand rather than supply because there is less investment in productive assets. He said: “Rising household credit reflects improved access to formal finance and short-term confidence among consumers.