Minister of Finance, Economic Planning and Decentralization, Joseph Mwanamveka, has expressed confidence in Malawi’s medium-term economic prospects, assuring stakeholders that the country is on a path to recovery despite persistent internal and external shocks.
Speaking on Tuesday morning in Mzuzu during the second pre-budget consultation meeting, Mwanamveka said government projections indicate a steady rebound in economic activity over the next two years. He disclosed that Malawi’s Gross Domestic Product (GDP) is expected to grow by 4 percent in 2026 and accelerate further to 4.9 percent in 2027.
According to the minister, the anticipated growth will be driven by a package of prudent macroeconomic and fiscal reforms aimed at stabilising the economy and restoring confidence among investors, development partners and the general public.
“This growth will be made possible through disciplined and well-targeted reforms. These include revenue-enhancing measures, improved tax administration, and decisive steps to rationalise and cut unnecessary public expenditure,” Mwanamveka said.
He acknowledged that Malawi’s economy has in recent years been under severe strain due to a combination of global and domestic challenges. These include recurring food shortages linked to climate shocks, persistently high inflation, foreign exchange pressures, infrastructure deficits, and energy constraints that have negatively affected productivity across key sectors.
Mwanamveka described the current situation as critical, noting that the cumulative impact of these challenges has pushed the economy to what he termed “a death bed.” However, he emphasised that government interventions are beginning to lay a foundation for recovery and resilience.
The minister said the pre-budget consultations are a critical platform for ensuring that the 2026/27 National Budget is inclusive, realistic and responsive to the needs of Malawians. He called on stakeholders to provide constructive input that will help government prioritise growth-enhancing sectors such as agriculture, energy, manufacturing and infrastructure, while also protecting social spending.
“Our focus is not only on recovery, but on building an economy that is more resilient, inclusive and capable of withstanding future shocks,” he said.
Mwanamveka reaffirmed government’s commitment to fiscal discipline, transparency and policy consistency, noting that these elements are essential for restoring macroeconomic stability and unlocking sustainable economic growth in the medium to long term.
