# Malawi economic recovery and stabilization efforts > Developing situation record from CLSTR: https://clstr.news/situations/malawi-economic-recovery-and-stabilization-efforts > Updated: 2026-10-13T10:56:31.000Z. Sources: 7. Developments: 2. Malawi has initiated a series of economic stabilization and recovery efforts. In September 2026, the National Assembly approved a K10.978 trillion (approximately US$6.46 billion) national budget for the 2026/2027 fiscal year. This budget prioritizes agriculture with K971.3 billion earmarked for domestic food production and grain reserves, alongside significant allocations for health, education, and infrastructure. The plan also seeks to reduce the budget deficit from 11.9 percent to 9 percent of GDP. By October 2026, these efforts transitioned into IMF-backed reforms under the National Economic Recovery Plan (NERP). While IMF mission chief Justin Tyson noted that authorities are moving in the right direction through rising domestic revenue and controlled expenditure, the country continues to face economic hardships. These include foreign exchange shortages affecting medicine and fuel, power outages, and high non-food inflation. The Economics Association of Malawi (Ecama) has cautioned against the premature relaxation of monetary policy to ensure price stability is maintained. ## Timeline ### 2026-10-13: Malawi implements IMF-backed reforms to stabilize economy Malawi is implementing IMF-backed reforms to stabilize its economy, though experts warn against premature monetary easing amid persistent inflation, foreign exchange shortages, and high non-food costs. 2 sources. https://clstr.news/cluster/malawi-implements-imf-backed-reforms-to-stabilize-economy ### 2026-09-19: Malawi Parliament approves K10.98 trillion budget for economic recovery Malawi's National Assembly approved a K10.978 trillion budget for 2026/2027, prioritizing agriculture, food security, and economic stabilization to combat inflation and maize deficits. 5 sources. https://clstr.news/cluster/malawi-parliament-approves-k1098-trillion-budget-for-economic-recovery --- Cite as: Malawi economic recovery and stabilization efforts. CLSTR, https://clstr.news/situations/malawi-economic-recovery-and-stabilization-efforts