Malawi: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi
IMF Staff Country Reports, August 6, 2025
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- Malawi: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi
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Bibliographic details
- Published: August 6, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229019576.002
Major macroeconomic challenges and diagnosis
- Malawi continues to face significant macroeconomic challenges, including external shocks, structurally low growth, persistent inflation, unsustainable fiscal and debt dynamics, and declining Official Development Assistance.
- Impediments to macroeconomic stability and underlying fiscal dominance are not expected to be addressed absent policy change.
Recent developments and key indicators
- Real gross domestic product growth declined to 1.8 percent in 2024 from 1.9 percent in 2023.
- Economic activity in 2024 was hindered by lower-than-expected agricultural output and critical foreign exchange shortages.
Illustrative reform scenario and expected outcomes
- Under an illustrative reform scenario, impediments to growth are gradually addressed and policy adjustment critical to regaining macroeconomic stability is implemented, resulting in higher growth and lower inflation.
Structural reforms and policy recommendations
- Fully operationalize Integrated Financial Management and Information System across government agencies.
- Reduce distortions in the economy.
- Adopt a rigorous fiscal regime for mining to ensure new resources are allocated efficiently.
- Eliminate regulatory burdens.
- Implement safeguard recommendations at the Reserve Bank of Malawi.
- Continue governance and transparency reforms.
- Structural reforms aimed to support real growth and attract foreign investment.
Subject tags and topical focus
- Debt sustainability, Exchange rates, External debt, Foreign exchange, Inflation, Prices, Public debt
- Keywords include: Africa, Debt sustainability, Exchange rates, foreign exchange restriction, FX auction, Global, Inflation, inflation expectation, RBM rate, Southern Africa, spot transaction
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