As officials review the recently tabled K10.978 trillion national budget, the Ministry of Finance published its 2026-27 Budget Policy Statement on March 11 detailing new deficit forecasts. According to the government's official finance portal, the expected deficit-to-GDP ratio will drop to 9.0 percent, an improvement from 11.9 percent in the 2025-26 fiscal year. The Ministry also stated that approximately 11,000 retirees will receive their terminal benefits by the end of March 2026. This mass clearance is projected to cut the waiting period for pensions and gratuities from an average of over 36 months to just three months.
Update: Following the Reserve Bank of Malawi's previously reported decision to lower the policy rate to 24 percent, central bank officials have clarified their inflation targets. According to a March 9 report by Ecofin Agency, the central bank expects inflation to continue easing throughout 2026. This anticipated drop is largely tied to a stronger domestic food supply, with better harvests expected from the 2025-2026 agricultural season alongside ongoing government food assistance programmes.
On the foreign exchange market, the Malawian kwacha has held a stable position against major global currencies this week. According to Trading Economics on March 11, the official exchange rate remained unchanged at 1,733.67 kwacha per United States dollar. The financial data platform reports that while the kwacha has stayed flat over the past month, it has recorded a slight depreciation of 0.97 percent over the past 12 months.