Malawi:
Economy

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Other pages in this profile of Malawi:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition 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 December 2007, the US granted Malawi eligibility status to receive financial support within the Millennium Challenge Corporation (MCC) initiative. Malawi will now begin a consultative process to develop a five-year program before funding can begin. 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 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.
GDP (purchasing power parity)	Definition - World rank and map $10.51 billion (2007 est.)
GDP (official exchange rate)	Definition $3.538 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 7.4% (2007 est.)
GDP - per capita	Definition - World rank and map $800 (2007 est.)
GDP - composition by sector	Definition agriculture: 37.8% industry: 18.1% services: 44.1% (2007 est.)
Labor force	Definition 4.5 million (2001 est.)
Labor force - by occupation	Definition agriculture: 90% industry and services: 10% (2003 est.)
Unemployment rate	Definition - World rank and map NA%
Population below poverty line	Definition 53% (2004)
Household income or consumption by percentage share	Definition lowest 10%: 2.9% highest 10%: 31.8% (2004)
Distribution of family income - Gini index	Definition - World rank and map 39 (2004)
Inflation rate (consumer prices)	Definition - World rank and map 8.1% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 8.4% of GDP (2007 est.)
Budget	Definition revenues: $1.128 billion expenditures: $1.185 billion (2007 est.)
Public debt	Definition - World rank and map 50.6% of GDP (2007 est.)
Agriculture - products	Definition tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats
Industries	Definition tobacco, tea, sugar, sawmill products, cement, consumer goods
Industrial production growth rate	Definition - World rank and map 4.4% (2007 est.)
Electricity - production	Definition - World rank and map 1.397 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 1.299 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 93.3 kWh (2005)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 6,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 0.4 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 0 bbl/day (2004)
Oil - imports	Definition - World rank and map 6,263 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$113 million (2007 est.)
Exports	Definition - World rank and map $604 million f.o.b. (2007 est.)
Exports - commodities	Definition tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel
Exports - partners	Definition South Africa 12.4%, Germany 12%, Egypt 9.4%, Zimbabwe 8.3%, US 7.5%, Russia 4.7%, Netherlands 4.5% (2006)
Imports	Definition - World rank and map $866 million f.o.b. (2007 est.)
Imports - commodities	Definition food, petroleum products, semimanufactures, consumer goods, transportation equipment
Imports - partners	Definition South Africa 34.9%, India 8.2%, Zambia 7.8%, Tanzania 5.9%, US 5.9%, China 4.3% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $217 million (31 December 2007 est.)
Debt - external	Definition - World rank and map $894 million (31 December 2007 est.)
Stock of direct foreign investment - at home	Definition $NA
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $NA
Economic aid - recipient	Definition $575.3 million (2005)
Currency (code)	Definition Malawian kwacha (MWK)
Exchange rates	Definition Malawian kwachas per US dollar - 141.12 (2007), 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003)
Fiscal year	Definition 1 July - 30 June

Malawi: Economy

Malawi:
Economy