Malawi Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$28.44 billion (2020 est.)

$28.22 billion (2019 est.)

$26.69 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

4% (2017 est.)

2.3% (2016 est.)

3% (2015 est.)

Real GDP per capita

$1,500 (2020 est.)

$1,500 (2019 est.)

$1,500 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$7.766 billion (2019 est.)

Inflation rate (consumer prices)

9.3% (2019 est.)

12.4% (2018 est.)

11.7% (2017 est.)

GDP - composition, by sector of origin

agriculture: 28.6% (2017 est.)

industry: 15.4% (2017 est.)

services: 56% (2017 est.)

GDP - composition, by end use

household consumption: 84.3% (2017 est.)

government consumption: 16.3% (2017 est.)

investment in fixed capital: 15.3% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 27.9% (2017 est.)

imports of goods and services: -43.8% (2017 est.)

Agricultural products

sweet potatoes, cassava, sugar cane, maize, mangoes/guavas, potatoes, tomatoes, pigeon peas, bananas, plantains

Industries

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

Industrial production growth rate

1.2% (2017 est.)

Labor force

7 million (2013 est.)

Labor force - by occupation

agriculture: 76.9%

industry: 4.1%

services: 19% (2013 est.)

Unemployment rate

20.4% (2013 est.)

Youth unemployment rate (ages 15-24)

total: 1.2%

male: 1%

female: 1.4% (2020 est.)

Population below poverty line

51.5% (2016 est.)

Gini Index coefficient - distribution of family income

44.7 (2016 est.)

39 (2004)

Household income or consumption by percentage share

lowest 10%: 2.2%

highest 10%: 37.5% (2010 est.)

Budget

revenues: 1.356 billion (2017 est.)

expenditures: 1.567 billion (2017 est.)

Budget surplus (+) or deficit (-)

-3.4% (of GDP) (2017 est.)

Public debt

59.2% of GDP (2017 est.)

60.3% of GDP (2016 est.)

Taxes and other revenues

21.7% (of GDP) (2017 est.)

Fiscal year

1 July - 30 June

Current account balance

-$591 million (2017 est.)

-$744 million (2016 est.)

Exports

$1.16 billion (2019 est.) note: data are in current year dollars

$1.11 billion (2018 est.) note: data are in current year dollars

$9.658 billion (2017 est.)

Exports - partners

Belgium 16%, United States 8%, Egypt 7%, South Africa 6%, Germany 6%, Kenya 5%, United Arab Emirates 5% (2019)

Exports - commodities

tobacco, tea, raw sugar, beans, soybean products, clothing and apparel (2019)

Imports

$3.2 billion (2019 est.) note: data are in current year dollars

$2.92 billion (2018 est.) note: data are in current year dollars

$11.631 billion (2017 est.)

Imports - partners

South Africa 17%, China 16%, United Arab Emirates 9%, India 9%, United Kingdom 8% (2019)

Imports - commodities

postage stamps, refined petroleum, packaged medicines, fertilizers, office machinery/parts (2019)

Reserves of foreign exchange and gold

$780.2 million (31 December 2017 est.)

$585.7 million (31 December 2016 est.)

Debt - external

$2.102 billion (31 December 2017 est.)

$1.5 billion (31 December 2016 est.)

Exchange rates

Malawian kwachas (MWK) per US dollar -

762.4951 (2020 est.)

736.6548 (2019 est.)

732.335 (2018 est.)

499.6 (2014 est.)

424.9 (2013 est.)

NOTE: The information regarding Malawi on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Malawi 2022 information contained here. All suggestions for corrections of any errors about Malawi 2022 should be addressed to the CIA or the source cited on each page.