Economy - overview:
Landlocked Malawi ranks among the world's most densely populated and least developed countries. The country’s economic performance has historically been constrained by policy inconsistency, macroeconomic instability, limited connectivity to the region and the world, and poor health and education outcomes that limit labor productivity. The economy is predominately agricultural with about 80% of the population living in rural areas. Agriculture accounts for about 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 program. Between 2005 and 2009 Malawi’s government exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year IMF Poverty Reduction and Growth Facility worth $56 million. The government announced infrastructure projects that could yield improvements, such as a new oil pipeline for better fuel access, and the potential for a waterway link through Mozambican rivers to the ocean for better transportation options.Since 2009, however, Malawi has experienced some setbacks, including a general shortage of foreign exchange, which has damaged its ability to pay for imports, and fuel shortages that hinder transportation and productivity. In October 2013, the African Development Bank, the IMF, several European countries, and the US indefinitely froze $150 million in direct budgetary support in response to a high level corruption scandal, called “Cashgate,” citing a lack of trust in the government’s financial management system and civil service. Most of the frozen donor funds — which accounted for 40% of the budget — have been channeled through non-governmental organizations in the country. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services. Investment had fallen continuously for several years, but rose 4 percentage points in 2014 to 17% of GDP.The government faces many challenges, including developing a market economy, improving educational facilities, addressing environmental problems, dealing with HIV/AIDS, and satisfying foreign donors on anti-corruption efforts.

GDP (purchasing power parity):
$20.56 billion (2015 est.) $19.77 billion (2014 est.) $18.71 billion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 143
[see also: GDP country ranks ]

GDP (official exchange rate):
$6.388 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4% (2015 est.) 5.7% (2014 est.) 5.2% (2013 est.)
country comparison to the world: 64
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$1,200 (2015 est.) $1,100 (2014 est.) $1,100 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 220
[see also: GDP - per capita country ranks ]

Gross national saving:
8.9% of GDP (2015 est.) 6% of GDP (2014 est.) 6.6% of GDP (2013 est.)
country comparison to the world: 155
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 77.5%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 17.4%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 12.4%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 2.7%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 43.5%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -53.5% (2015 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 32.9%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 17.1%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 50.1% (2015 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
4.1% (2015 est.)
country comparison to the world: 52
[see also: Industrial production growth rate country ranks ]

Labor force:
5.747 million (2007 est.)
country comparison to the world: 71
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 90%
[see also: Labor force - by occupation - agriculture country ranks ]
industry and services: 10% (2003 est.)

Unemployment rate:
NA%
[see also: Unemployment rate country ranks ]

Population below poverty line:
53% (2004 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 31.9% (2004)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
39 (2004)
country comparison to the world: 69
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $1.188 billion
[see also: Budget revenues country ranks ]
expenditures: $1.388 billion (2015 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
18.6% of GDP (2015 est.)
country comparison to the world: 170
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.1% of GDP (2015 est.)
country comparison to the world: 115
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
61.1% of GDP (2015 est.) 60.9% of GDP (2014 est.)
country comparison to the world: 60
[see also: Public debt country ranks ]

Fiscal year:
1 July - 30 June

Inflation rate (consumer prices):
22.2% (2015 est.) 24.4% (2014 est.)
country comparison to the world: 220
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
15% (31 December 2009) 15% (31 December 2008)
country comparison to the world: 10
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
41% (31 December 2015 est.) 44.29% (31 December 2014 est.)
country comparison to the world: 3
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$456.9 million (31 December 2015 est.) $549.8 million (31 December 2014 est.)
country comparison to the world: 166
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$1.481 billion (31 December 2014 est.) $1.2 billion (31 December 2013 est.)
country comparison to the world: 164
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$647 million (31 December 2015 est.) $800.2 million (31 December 2014 est.)
country comparison to the world: 163
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$753.6 million (31 December 2012 est.) $1.384 billion (31 December 2011) $1.363 billion (31 December 2010 est.)
country comparison to the world: 110
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$168 million (2015 est.) -$216 million (2014 est.)
country comparison to the world: 78
[see also: Current account balance country ranks ]

Exports:
$1.185 billion (2015 est.) $1.366 billion (2014 est.)
country comparison to the world: 155
[see also: Exports country ranks ]

Exports - commodities:
tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel (2010 est.)

Exports - partners:
Belgium 12.4%, Zimbabwe 10.4%, South Africa 6.8%, Germany 6.8%, Russia 6.6%, Canada 6.1%, US 6% (2014)

Imports:
$2.664 billion (2015 est.) $2.808 billion (2014 est.)
country comparison to the world: 150
[see also: Imports country ranks ]

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

Imports - partners:
South Africa 26.2%, India 15.5%, China 10%, Zambia 9.8%, Tanzania 5.4% (2014)

Reserves of foreign exchange and gold:
$743.4 million (31 December 2015 est.) $625.2 million (31 December 2014 est.)
country comparison to the world: 140
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$1.884 billion (31 December 2014 est.) $1.558 billion (31 December 2013 est.)
country comparison to the world: 150
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$NA
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$NA
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Malawian kwachas (MWK) per US dollar - 520.5 (2015 est.) 424.9 (2014 est.) 424.9 (2013 est.) 249.11 (2012 est.) 156.93 (2011 est.)