Lilongwe: An International Monetary Fund (IMF) staff team led by Mr. Justin Tyson visited Malawi on a staff visit during November 3-7 as part of its regular engagement with the Malawian authorities. The discussions focused on recent economic developments and near-term policy priorities to support macroeconomic stability and growth. Discussions were held in Lilongwe.
At the conclusion of the visit, Mr. Tyson issued the following statement:
"The team had productive discussions with the authorities. They discussed recent economic, financial, and social developments. The macroeconomic challenges for the new government are significant. These include a worse-than-budgeted fiscal outturn at midyear, accelerated inflation, and continued pressure on the exchange rate. Growth is projected to remain modest at 2.4 percent in 2025, and food insecurity is elevated. Public debt dynamics remain unsustainable.
"Discussions focused on near-term policy priorities. Staff agreed that urgent fiscal consolidation and tighter monetary policy are needed to tackle inflation, reduce imbalances, and stabilize the foreign exchange market. Staff commend the authorities for reactivating the automatic fuel price mechanism and encourage them to operationalize the promised fiscal discipline and revenue mobilization, starting with the mid-year budget. Recent measures to control expenditure are a positive sign. Staff look forward to continued engagement with the authorities on their macroeconomic reform trajectory.
"The IMF staff team wishes to express its gratitude to the authorities and stakeholders for the constructive and open discussions during the visit."
The IMF team held meetings with the Minister of Finance, Economic Planning and Development, Hon. Joseph Mwanamvekha, the Secretary to the Treasury, Dr. Cliff Chiunda, the Governor of the Reserve Bank of Malawi, Dr. MacDonald Mwale, and other senior government and RBM officials. The team also engaged with representatives of the private sector, civil society organizations, and Malawi's development partners.
