Malawi



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Malawi Economy 2008


Economy - overview: 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): $10.59 billion (2007 est.)
GDP (official exchange rate): $3.538 billion (2007 est.)
GDP - real growth rate: 8% (2007 est.)
GDP - per capita (PPP): $800 (2007 est.)
GDP - composition by sector: agriculture: 37.8% industry: 18.1% services: 44.1% (2007 est.)
Labor force: 4.5 million (2001 est.)
Labor force - by occupation: agriculture: 90% industry and services: 10% (2003 est.)
Unemployment rate: NA%
Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 31.8% (2004)
Distribution of family income - Gini index: 39 (2004)
Investment (gross fixed): 8.4% of GDP (2007 est.)
Budget: revenues: $1.128 billion expenditures: $1.185 billion (2007 est.)
Public debt: 50.6% of GDP (2007 est.)
Inflation rate (consumer prices): 7.9% (2007 est.)
Central bank discount rate: 15% (31 December 2007)
Commercial bank prime lending rate: 27.72% (31 December 2007)
Stock of money: $361.5 million (31 December 2007)
Stock of quasi money: $250.4 million (31 December 2007)
Stock of domestic credit: $406.2 million (31 December 2007)
Agriculture - products: tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats
Industries: tobacco, tea, sugar, sawmill products, cement, consumer goods
Industrial production growth rate: 4.4% (2007 est.)
Electricity - production: 1.13 billion kWh (2006 est.)
Electricity - consumption: 1.051 billion kWh (2006 est.)
Electricity - exports: 0 kWh (2007 est.)
Electricity - imports: 0 kWh (2007 est.)
Oil - production: 0 bbl/day (2007 est.)
Oil - consumption: 6,160 bbl/day (2006 est.)
Oil - exports: 0 bbl/day (2005)
Oil - imports: 6,788 bbl/day (2005)
Oil - proved reserves: 0 bbl (1 January 2006 est.)
Natural gas - production: 0 cu m (2007 est.)
Natural gas - consumption: 0 cu m (2007 est.)
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: 0 cu m (2007 est.)
Natural gas - proved reserves: 0 cu m (1 January 2006 est.)
Current account balance: -$318 million (2007 est.)
Exports: $604 million f.o.b. (2007 est.)
Exports - commodities: tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel
Exports - partners: Germany 11.7%, South Africa 10%, Egypt 9.2%, Zimbabwe 8.2%, US 7.3%, Russia 5.8%, Netherlands 4.5% (2007)
Imports: $866 million f.o.b. (2007 est.)
Imports - commodities: food, petroleum products, semimanufactures, consumer goods, transportation equipment
Imports - partners: South Africa 36.1%, India 8.5%, Tanzania 6.1%, US 6.1%, China 4.9% (2007)
Reserves of foreign exchange and gold: $217.2 million (31 December 2007 est.)
Debt - external: $894 million (31 December 2007 est.)
Stock of direct foreign investment - at home: $NA
Stock of direct foreign investment - abroad: $NA
Market value of publicly traded shares: $NA
Currency (code): Malawian kwacha (MWK)
Exchange rates: Malawian kwachas (MWK) per US dollar - 141.12 (2007), 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003)

NOTE: The economy information regarding Malawi on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Malawi Economy 2008 information contained here. All suggestions for corrections of any errors about Malawi Economy 2008 should be addressed to the CIA.