Malawi needs coordinated action to restore macroeconomic stability, resolve foreign exchange shortages, and reignite export-led growth, with the macroeconomic position still fragile, according to a World Bank press release on the latest Malawi Economic Monitor published February 24, 2026. The World Bank projects real GDP growth of 1.9 percent in 2025, below population growth, and says fiscal deficits remain among the highest in Sub-Saharan Africa, with public debt near 90 percent of GDP and Malawi in external debt distress, according to the World Bank.
The World Bank says policy priorities include stronger fiscal discipline, domestic revenue mobilisation, and progress on debt restructuring, alongside measures to reduce trade costs such as simplifying and digitising import and export licensing and improving border efficiency, according to the World Bank. Separately, Xinhua reports that China will implement zero-tariff treatment for imports from 53 African countries that have diplomatic ties with China, starting May 1, 2026, a policy expected to support African exports, according to People’s Daily Online.