By Burnett Munthali
World Bank Country Manager for Malawi, Firas Raad, has called on the Malawian government to prioritize fiscal consolidation as part of a comprehensive strategy to restore macroeconomic stability. Speaking at the Bingu International Convention Centre (BICC) in Lilongwe, Raad emphasized the urgent need for policy reforms that would strengthen the country’s financial position and support sustainable economic growth.
The remarks were made during the launch of the 20th edition of the Malawi Economic Monitor, a biennial publication that assesses Malawi’s economic performance and highlights key areas for policy intervention. The report provides an in-depth analysis of economic trends, challenges, and reform opportunities, serving as a critical resource for policymakers, development partners, and economic stakeholders.
In his opening speech, Raad stressed that Malawi must take decisive steps toward debt restructuring, inflation control, and improved public financial management. “Fiscal consolidation should be a top priority for the government if it is to achieve macroeconomic stability. It is essential to implement policies that will reduce fiscal deficits, improve revenue collection, and control excessive government spending,” he said.
Raad further noted that Malawi’s rising debt burden poses a significant challenge to economic recovery. He urged policymakers to expedite debt restructuring efforts to ease the financial strain on the government and create room for essential public investments. “Swift action on debt restructuring is needed to ensure that the country does not fall deeper into unsustainable debt levels,” he added.
Inflation, another pressing concern, was also highlighted in Raad’s speech. He warned that persistent inflation threatens household incomes and business operations, making it critical for authorities to adopt measures that stabilize prices and support economic resilience. “Containing inflation should be a priority, as it affects the cost of living for ordinary Malawians and undermines economic confidence,” Raad explained.
The Malawi Economic Monitor launch brought together government officials, economic experts, and representatives from the private sector and civil society. Discussions at the event focused on identifying practical solutions to Malawi’s economic challenges, with a strong emphasis on structural reforms, fiscal discipline, and investment in key sectors such as agriculture, energy, and digital innovation.
Raad reiterated the World Bank’s commitment to supporting Malawi’s economic recovery through policy advisory services, financial assistance, and technical support. He encouraged the government to take bold steps in implementing necessary reforms to achieve long-term economic stability and resilience.
As Malawi navigates its economic challenges, the insights from the Malawi Economic Monitor are expected to play a crucial role in shaping policies that will foster growth, attract investment, and improve overall economic performance. The coming months will be critical as the government works to implement these recommendations and restore confidence in the country’s financial future.
