IMF Calls for Urgent Fiscal and Monetary Tightening as Malawi Faces Heightened Economic Pressures
An International Monetary Fund (IMF) staff team, led by Mr. Justin Tyson, has concluded a staff visit to Malawi held from November 3–7, 2025, to review recent economic developments and discuss policy measures to strengthen macroeconomic stability and growth.
The discussions, held in Lilongwe, engaged government officials, private sector representatives, civil society actors, and development partners.
In a statement at the end of the visit, Mr. Tyson noted that the new government faces “significant macroeconomic challenges,” citing a worse-than-expected fiscal position at midyear, rising inflation, and persistent exchange rate pressures.
He added that economic growth is expected to remain modest at 2.4 percent in 2025, with food insecurity posing serious social concerns, while public debt dynamics remain unsustainable.
Mr. Tyson emphasized that “urgent fiscal consolidation and tighter monetary policy” are needed to curb inflation, restore external balance, and stabilize the foreign exchange market.
He commended the authorities for reinstating the automatic fuel pricing mechanism and encouraged consistent implementation of fiscal discipline and revenue mobilization measures in the upcoming mid-year budget.
The IMF team expressed appreciation to the Malawian authorities for their cooperation and reaffirmed its commitment to continued engagement in support of the country’s reform agenda.
