Malawi Economy 2007

Economy - overview:
Landlocked Malawi ranks among the world's least developed countries. The economy is predominately agricultural, with about 85% of the population living in rural areas. Agriculture accounts for about one-third of GDP and four-fifths 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. 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. In 2005, President MUTHARIKA championed an anticorruption campaign. Since 2005 President MUTHARIKA'S government has exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE.

GDP (purchasing power parity):
$8.272 billion (2006 est.)

GDP (official exchange rate):
$2.202 billion (2006 est.)

GDP - real growth rate:
8.5% (2006 est.)

GDP - per capita (PPP):
$600 (2006 est.)

GDP - composition by sector:
agriculture: 36.1%
industry: 18.8%
services: 45.1% (2006 est.)

Labor force:
4.5 million (2001 est.)

Labor force - by occupation:
agriculture: 90%
industry and services: 10% (2003 est.)

Unemployment rate:
NA%

Population below poverty line:
53% (2004)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA% (2004)

Distribution of family income - Gini index:
39 (2004)

Inflation rate (consumer prices):
14% (2006 est.)

Investment (gross fixed):
9.1% of GDP (2006 est.)

Budget:
revenues: $1.016 billion
expenditures: $1.097 billion (2006 est.)

Public debt:
39.4% of GDP (2006 est.)

Agriculture - products:
tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats

Industries:
tobacco, tea, sugar, sawmill products, cement, consumer goods

Industrial production growth rate:
6.4% (2006 est.)

Electricity - production:
1.397 billion kWh (2005)

Electricity - consumption:
1.299 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
5,500 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$-209 million (2006 est.)

Exports:
$560.3 million f.o.b. (2006 est.)

Exports - commodities:
tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel

Exports - partners:
South Africa 12.6%, Germany 9.7%, Egypt 9.6%, US 9.5%, Zimbabwe 8.5%, Russia 5.4%, Netherlands 4.4% (2006)

Imports:
$832 million f.o.b. (2006 est.)

Imports - commodities:
food, petroleum products, semimanufactures, consumer goods, transportation equipment

Imports - partners:
South Africa 34.6%, India 8.1%, Zambia 7.8%, US 6.4%, Tanzania 5.8%, Germany 4.6%, China 4.3% (2006)

Economic aid - recipient:
$575.3 million (2005)

Reserves of foreign exchange and gold:
$134.3 million (2006 est.)

Debt - external:
$468 million (2006 est.)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$NA

Currency (code):
Malawian kwacha (MWK)

Exchange rates:
Malawian kwachas per US dollar - 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003), 76.687 (2002)