Finance Minister Joseph Mwanamvekha says Malawi’s economy experienced relative stability during the Democratic Progressive Party (DPP) administration from 2014 to 2020, before the party’s removal from power.
Mwanamvekha said this in Blantyre at the third session of the Pre-Budget Consultative Meeting.
He said when the DPP was ousted in 2020, inflation was hovering between 8 and 9 percent, the policy rate stood at 12 percent, and the exchange rate was stable at around K750 to 1 US dollar.
The minister further noted that public debt at the time stood at K4.1 trillion, while Malawi had foreign exchange reserves of about one billion US dollars, providing a buffer against external shocks.
According to him, the economic situation deteriorated significantly between 2020 and 2025, with public debt rising sharply to about K22 trillion and foreign reserves being depleted.
He said the erosion of reserves and rising debt levels contributed to the current economic challenges facing the country.
Mwanamvekha said the government is now grappling with the consequences of that period, including pressure on the exchange rate, rising costs of living and constrained fiscal space.
By Wesysylas Chirwa
