Malawi's Economy
Malawi’s Economy:
Landlocked Malawi ranks among the world's most densely populated and least developed countries. The economy is predominately agricultural with about 85% of the population living in rural areas. Agriculture accounts for more than one-third of GDP and 90% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program. In December 2007, the US granted Malawi eligibility status to receive financial support within the Millennium Challenge Corporation (MCC) initiative. The government faces many challenges including developing a market economy, improving educational facilities, facing up to environmental problems, dealing with the rapidly growing problem of HIV/AIDS, and satisfying foreign donors that fiscal discipline is being tightened. Since 2005 President MUTHARIKA'S government has exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year Poverty Reduction and Growth Facility worth $56 million with the IMF. Improved relations with the IMF lead other international donors to resume aid as well. In 2009, however, Malawi has experienced some setbacks, including a general shortage of foreign exchange, which has damaged its ability to pay for imports. Investment fell 23% in 2009. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services.
GDP (purchasing power parity):
$12.81 billion (2009 est.)
country comparison to the world: 139
$12.1 billion (2008 est.)
$11.03 billion (2007 est.)
note: data are in 2009 US dollars
$4.909 billion (2009 est.)
5.9% (2009 est.)
country comparison to the world: 14
9.7% (2008 est.)
7.9% (2007 est.)
$900 (2009 est.)
country comparison to the world: 218
$800 (2008 est.)
$800 (2007 est.)
note: data are in 2009 US dollars
agriculture: 35.5%
industry: 19.9%
services: 44.6% (2009 est.)
5.747 million (2007 est.)
country comparison to the world: 67
agriculture: 90%
industry and services: 10% (2003 est.)
NA% est.)
Population below poverty line:
53% (2004)
Household income or consumption by percentage share:
lowest 10%: 3%
highest 10%: 31.9% (2004)
Distribution of family income - Gini index:
39 (2004)
country comparison to the world: 68
11.6% of GDP (2009 est.)
country comparison to the world: 146
revenues: $1.215 billion
expenditures: $1.325 billion (2009 est.)
58% of GDP (2009 est.)
country comparison to the world: 35
49.1% of GDP (2008 est.)
Inflation rate (consumer prices):
8.5% (2009 est.)
country comparison to the world: 186
8.7% (2008 est.)
15% (31 December 2008)
country comparison to the world: 15
15% (31 December 2007)
Commercial bank prime lending rate:
25.28% (31 December 2008)
country comparison to the world: 9
27.72% (31 December 2007)
$NA (31 December 2008)
$361.5 million (31 December 2007)
$NA (31 December 2008)
$250.4 million (31 December 2007)
$NA (31 December 2008)
$406.2 million (31 December 2007)
Market value of publicly traded shares:
$NA (31 December 2008)
$NA (31 December 2007)
$587.2 million (31 December 2006)
tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats
tobacco, tea, sugar, sawmill products, cement, consumer goods
Industrial production growth rate:
10% (2009 est.)
country comparison to the world: 5
1.69 billion kWh (2007 est.)
country comparison to the world: 137
1.572 billion kWh (2007 est.)
country comparison to the world: 138
0 kWh (2008 est.)
0 kWh (2008 est.)
0 bbl/day (2008 est.)
country comparison to the world: 167
8,000 bbl/day (2008 est.)
country comparison to the world: 157
Previous page: Helpful Information on Malawi
Next page: Travel Advice for Australians Visiting Malawi
