By Suleman Chitera
The World Bank has issued a strong warning to the Malawi government, calling for immediate fiscal consolidation to stabilise the country’s deteriorating economy.
Speaking in Lilongwe today during the launch of the Malawi Public Finance Review, World Bank Country Manager Firas Raad said Malawi must tighten both revenue and expenditure controls to restore macroeconomic stability.
The report highlights eight major concerns, including persistent fiscal deficits that have triggered a debt crisis, rising wage and interest payments, and weakening fiscal governance. It further warns that exchange rate distortions and implicit subsidies are draining public finances.
Meanwhile, ECAMA President Dr. Bertha Bangara Chikadza has urged authorities to act decisively, saying Malawi’s economic crisis is deepening and requires urgent corrective measures
