Malawi: Malawi Urged to Build Economic Resilience As World Economy Wobbles
[Nyasa Times] Malawi cannot afford to rely on external demand or donor support as the global economy slows, according to a senior Reserve Bank of Malawi economist, who has warned that the country is underperforming even by regional standards and must accelerate reforms to strengthen economic resilience.
Malawi's senior Reserve Bank economist Kisu Simwaka has cautioned that the country must accelerate economic reforms to bolster resilience as the global economy shows signs of slowing. The World Economic Outlook projections suggest a reduction in global growth from 3.5 per cent to 3.1 per cent, which could pose challenges for African economies particularly those reliant on commodity exports and foreign aid.
Simwaka highlighted that Malawi's tobacco earnings, the country's primary source of foreign currency, contracted sharply by 45 per cent in early 2026 compared to the same period the previous year, reflecting the impact of weaker global demand. He emphasized that small open economies like Malawi cannot depend on external demand to fuel growth and stressed the need for domestic policies to build internal resilience.
These include accumulating foreign exchange reserves, addressing fiscal imbalances, and removing structural constraints to productivity. Simwaka also warned of potential volatility in fuel prices due to uncertainty in oil markets, which could exacerbate inflationary pressures or provide relief depending on exchange-rate stability.
While Sub-Saharan Africa's growth is forecast to be around 4.5 per cent, the per capita growth rate remains too low to make a significant difference in poverty reduction. The economist argued that Malawi's projected growth of 2.7 per cent is particularly weak, especially when population growth is factored in. Neighboring economies such as Zambia, Tanzania, and Rwanda are expected to outperform Malawi, underscoring the urgency for Malawi to catch up.
Written by urgent.news from AllAfrica's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
