Malawi Public Debt Hits 90 Percent of GDP as IMF Aid Sought

The finance minister of Malawi has announced that the nation’s public debt has reached unsustainable levels, now exceeding 90% of its gross domestic product. Speaking during an annual budget address on Friday, Joseph Mwanamvekha stated that the current debt trajectory poses a significant threat to the economic stability of the donor-dependent Southern African nation.

To address the fiscal pressure, the government is working toward a new support program with the International Monetary Fund in the short to medium term. This initiative is part of a broader strategy to stabilize public finances following years of economic turmoil. The country has faced persistent challenges, with inflation running at an annual rate above 20% since the middle of 2022.