A Financial Stability Report by Reserve Bank of Malawi (RBM) says the current to global economic outlook could threaten the country’s financial stability in the short-term, stating that tensions between the United States (US) and China, higher-than-expected inflation in the US and a ‘no-deal Brexit’ agreement in the United Kingdom (UK) as some of the risks to financial stability.

According to the report, sub-Saharan African (SSA) countries which rely heavily on global markets to finance developmental needs, will face constraints in financing and growth. “Tight global financial conditions could constrain financing and growth for many SSA countries, including Malawi.” emphasised the report.

Malawi currently accounts 3.4% of its towards an initiative known as everything but arms (EBA) to the UK, which upon the success of Brexit, will deprive Malawi of export earnings.