The World Bank says Malawi’s economy remains weighed down by structural bottlenecks that continue to suppress growth, investment and household welfare despite progress made on long-overdue economic reforms. According to the bank, inflation remains among the region’s highest, averaging 28.4 percent in 2025, driven by high food prices and money creation linked to pre-election deficits, persistent inflation is eroding household welfare. Malawi Government is implementing the National Economic Recovery Plan (Nerp) to restore macroeconomic stability and drive private-sector-led growth. The five-year strategy tackles fiscal and debt challenges while targeting single-digit inflation and a 6.5 percent GDP growth rate by 2030. “The challenges we are confronting are deep, structural and accumulated over many years and exacerbated in the past five years,” he said.