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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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  • International Monetary Fund

Abstract

Malawi is reeling from several shocks, including a drought last year which contributed to elevated inflation, and is now faced with falling grant inflows as ODA pulls back. Loose fiscal policy, from slippages as well as responses to shocks, together with loose monetary policies and exchange rate inflexibility subsequent to the November 2023 depreciation, have hampered macro stabilization. Food insecurity remains entrenched, macroeconomic instability has deepened, real growth is weak, and fiscal and debt dynamics continue to erode. The scope for reform appears limited ahead of general elections, which are scheduled for September 2025. The 2023 Extended Credit Facility (ECF) automatically terminated on May 14, 2025, eighteen months after approval without completing a review.

Suggested Citation

  • International Monetary Fund, 2025. "Malawi: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malawi," IMF Staff Country Reports 2025/226, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/226
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