By Suleman Chitera

The Reserve Bank of Malawi (RBM) has said the country’s economy is showing signs of gradual recovery, with several key sectors registering positive trends following months of economic strain.

In a statement issued on Tuesday, the central bank said Malawi’s economic recovery is “in the pipeline,” citing improvements in fiscal management, exchange rate stabilization efforts, and increased agricultural output as signs of progress.

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“The economy is on the pipeline towards recovery. We have started observing encouraging movements in agriculture, manufacturing, and services. With continued fiscal discipline and prudent monetary measures, the outlook remains promising,” the RBM said.

The bank added that policy measures introduced to stabilize the exchange rate and rebuild foreign reserves have begun to bear fruit, while the government’s push for import substitution and local production is expected to strengthen the economic base.

However, the RBM cautioned that persistent inflationary pressures, limited foreign currency inflows, and external shocks remain significant risks to the recovery process.

Economic analysts have welcomed the optimism but warned that recovery will depend largely on consistent implementation of policies, transparency in public spending, and a stable political environment ahead of the 2025 elections.

Malawi’s economy has in recent years struggled with high inflation, currency depreciation, and rising costs of living, compounded by global market disruptions.

Despite these challenges, the RBM insists that current reforms are laying a solid foundation for economic stability and long-term growth.