Economy - overview:
Landlocked Malawi ranks among the world's 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 direct budget support 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. Depressed food prices over 2017 led to a significant drop in inflation (from an average of 21.7% in 2016 to 12.3% in 2017), with a similar drop in interest rates.

GDP (purchasing power parity):
$22.42 billion (2017 est.)
$21.56 billion (2016 est.)
$21.08 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 145
[see also: GDP country ranks ]

GDP (official exchange rate):
$6.24 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4% (2017 est.)
2.3% (2016 est.)
3% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 79
[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 (CIA rank, may be based on non-current data): 223
[see also: GDP - per capita country ranks ]

Gross national saving:
3.9% of GDP (2017 est.)
-2.8% of GDP (2016 est.)
2.8% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 178
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 84.3% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 16.3% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 15.3% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 27.9% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -43.8% (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% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 15.4% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 56% (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 (CIA rank, may be based on non-current data): 150
[see also: Industrial production growth rate country ranks ]

Labor force:
7 million (2013 est.)
country comparison to the world (CIA rank, may be based on non-current data): 66
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 76.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 4.1%
[see also: Labor force - by occupation - industry country ranks ]
services: 19% (2013 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
20.4% (2013 est.)
country comparison to the world (CIA rank, may be based on non-current data): 187
[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.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
46.1 (2010)
39 (2004)
country comparison to the world (CIA rank, may be based on non-current data): 33
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 1.356 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 1.567 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
21.7% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 135
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.4% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 144
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
59.2% of GDP (2017 est.)
60.3% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 75
[see also: Public debt country ranks ]

Fiscal year:
1 July - 30 June

Inflation rate (consumer prices):
12.2% (2017 est.)
21.7% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 205
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
16% (31 December 2017 est.)
24% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 9
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
38.1% (31 December 2017 est.)
44.11% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 3
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$632.4 million (31 December 2017 est.)
$534 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 164
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$632.4 million (31 December 2017 est.)
$534 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 168
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$1.161 billion (31 December 2017 est.)
$1.049 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 165
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$18.97 million (31 December 2017 est.)
$8.643 million (31 December 2016 est.)
$101.9 million (31 December 2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 122
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$591 million (2017 est.)
-$744 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 122
[see also: Current account balance country ranks ]

Exports:
$1.42 billion (2017 est.)
$1.361 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 150
[see also: Exports country ranks ]

Exports - partners:
Zimbabwe 13.1%, Mozambique 11.8%, Belgium 10.7%, South Africa 6.3%, Netherlands 5%, UK 4.7%, Germany 4.3%, US 4.2% (2017)

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

Imports:
$2.312 billion (2017 est.)
$2.277 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 161
[see also: Imports country ranks ]

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

Imports - partners:
South Africa 20.7%, China 14.2%, India 11.6%, UAE 7%, Netherlands 4.4% (2017)

Reserves of foreign exchange and gold:
$780.2 million (31 December 2017 est.)
$585.7 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 140
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$2.102 billion (31 December 2017 est.)
$1.5 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 152
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$142.5 million (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 136
[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 -
731.69 (2017 est.)
720.1 (2016 est.)
713.85 (2015 est.)
499.6 (2014 est.)
424.9 (2013 est.)