Update: Following the World Bank's recent warnings regarding Malawi's economic instability, former Reserve Bank of Malawi governor Dalitso Kabambe has criticised the government for conflicting economic policies. Speaking to Nation Online, Kabambe stated that the clash between an expansionary fiscal policy, which features large deficits financed through domestic borrowing, and the central bank's tight monetary measures is driving up the cost of living. He cautioned that this lack of coordination creates market distortions and deepens economic uncertainty for citizens.
Economics Association of Malawi president Bertha Bangara-Chikadza echoed these concerns, noting that the unstable macroeconomic environment is reinforcing a cycle of low growth and high poverty. Bangara-Chikadza observed that this cycle could increase the government's reliance on grants and aid for livelihood support programmes, Nation Online reports.
Meanwhile, Malawi's annual inflation rate eased to 23.8 percent in March 2026, reaching its lowest level since July 2022, according to data from Trading Economics. The decrease from February's 24.1 percent was largely driven by a drop in food inflation, which slowed to 20 percent. However, non-food inflation climbed to 30.7 percent, reflecting ongoing cost pressures from rising fuel prices and utility tariffs that continue to strain households.