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, poor infrastructure, rampant corruption, high population growth, 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 80% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports, although Malawi is looking to diversify away from tobacco to other cash crops.The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. Donors halted aid from 2013 to 2016 because of concerns about corruption and fiscal carelessness, but the World Bank resumed budget support in May 2017. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program but recent increases in domestic borrowing mean that debt servicing in 2016 exceeded the levels prior to HIPC debt relief.Heavily dependent on rain-fed agriculture, with corn being the staple crop, Malawi’s economy was hit hard by the El Nino-driven drought in 2015 and 2016, and now faces threat from the fall armyworm. The drought also slowed economic activity, led to two consecutive years of declining economic growth, and contributed to high inflation rates. Because of concerns about subsequent droughts, the government banned maize exports from 2016 to late 2017, causing a market glut and depressing local prices.

GDP (purchasing power parity):
$22.47 billion (2017 est.) $21.5 billion (2016 est.) $21.02 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 145

GDP (official exchange rate):
$6.261 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.5% (2017 est.) 2.3% (2016 est.) 3% (2015 est.)
country comparison to the world: 56
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$1,200 (2017 est.) $1,200 (2016 est.) $1,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 224

Gross national saving:
2.5% of GDP (2017 est.) -3.3% of GDP (2016 est.) 2.7% of GDP (2015 est.)
country comparison to the world: 174
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 82.8%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 16%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 11.6%
[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: 33.8%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -46.8% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 28.6%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 15.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 55.9% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
1.2% (2017 est.)
country comparison to the world: 157
[see also: Industrial production growth rate country ranks ]

Labor force:
7 million (2013 est.)
country comparison to the world: 67
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 64.1%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 6.7%
[see also: Labor force - by occupation - industry country ranks ]
services: 29.2% (2013 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
20.4% (2013 est.)
country comparison to the world: 185
[see also: Unemployment rate country ranks ]

Population below poverty line:
50.7% (2010 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.2%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 37.5% (2010 est.)

Distribution of family income - Gini index:
46.1 (2010) 39.9 (2004)
country comparison to the world: 32
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $1.298 billion
[see also: Budget - revenues country ranks ]
expenditures: $1.612 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
20.7% of GDP (2017 est.)
country comparison to the world: 148
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-5% of GDP (2017 est.)
country comparison to the world: 162
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
54.6% of GDP (2017 est.) 56.1% of GDP (2016 est.)
country comparison to the world: 87
[see also: Public debt country ranks ]

Fiscal year:
1 July - 30 June

Inflation rate (consumer prices):
13% (2017 est.) 21.7% (2016 est.)
country comparison to the world: 211
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
24% (25 November 2016) 27% (July 2016)
country comparison to the world: 3
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
42.3% (31 December 2017 est.) 44.1% (31 December 2016 est.)
country comparison to the world: 3
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$638.1 million (31 December 2017 est.) $536.6 million (31 December 2016 est.)
country comparison to the world: 165
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$1.367 billion (31 December 2017 est.) $1.238 billion (31 December 2016 est.)
country comparison to the world: 166
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$1.181 billion (31 December 2017 est.) $1.054 billion (31 December 2016 est.)
country comparison to the world: 165
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$796.2 million (31 December 2016 est.) $936.3 million (31 December 2015 est.) $1.341 billion (31 December 2014 est.)
country comparison to the world: 108
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$568 million (2017 est.) -$739 million (2016 est.)
country comparison to the world: 107
[see also: Current account balance country ranks ]

Exports:
$1.443 billion (2017 est.) $1.361 billion (2016 est.)
country comparison to the world: 151
[see also: Exports country ranks ]

Exports - commodities:
tobacco 55%, dried legumes (8.8%), sugar (6.7%), tea (5.7%), cotton (2%), peanuts, coffee, soy (2015 est.)

Exports - partners:
Zimbabwe 12.9%, Mozambique 11%, Belgium 8.2%, South Africa 7.2%, US 6%, China 4.6%, Germany 4.3%, UK 4.2% (2016)

Imports:
$2.388 billion (2017 est.) $2.318 billion (2016 est.)
country comparison to the world: 154
[see also: Imports country ranks ]

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

Imports - partners:
South Africa 20.2%, China 13.8%, India 10.8%, UAE 9.7%, Zambia 5.7% (2016)

Reserves of foreign exchange and gold:
$613.5 million (31 December 2017 est.) $563.1 million (31 December 2016 est.)
country comparison to the world: 135
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$2.184 billion (31 December 2017 est.) $1.985 billion (31 December 2016 est.)
country comparison to the world: 151
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$800 million (2015)
country comparison to the world: 120
[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 - 729.1 (2017 est.) 713.85 (2016 est.) 713.85 (2015 est.) 499.6 (2014 est.) 424.9 (2013 est.)