unbekannter Gast

Malawi: Economy#

Landlocked Malawi ranks among the world's most densely populated and least developed countries. The economy is predominately agricultural with about 80% of the population living in rural areas. Agriculture, which has benefited from fertilizer subsidies since 2006, accounts for 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 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program. In December 2007, the US granted Malawi eligibility status to receive financial support within the Millennium Challenge Corporation (MCC) initiative. 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. Between 2005 and 2009 President BANDA'S government exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year IMF Poverty Reduction and Growth Facility (PRGF) worth $56 million. The government announced infrastructure projects that could yield improvements, such as a new oil pipeline for better fuel access, and the potential for a waterway link through Mozambican rivers to the ocean for better transportation options. Since 2009, however, Malawi has experienced some setbacks, including a general shortage of foreign exchange, which has damaged its ability to pay for imports, and fuel shortages that hinder transportation and productivity. Investment has fallen continuously for several years and in 2013 amounted to just 13% of GDP. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services. Donors, who provided an average of 36% of government revenue in the past five years, suspended general budget support for Malawi in 2011 due to a negative IMF review and governance issues.

Economic Facts#

GDP (purchasing power parity)$15.02 billion (2013 est.)
$14.3 billion (2012 est.)
$14.04 billion (2011 est.)
note: data are in 2013 US dollars
GDP - real growth rate5% (2013 est.)
1.9% (2012 est.)
4.3% (2011 est.)
GDP - per capita (PPP)$900 (2013 est.)
$900 (2012 est.)
$900 (2011 est.)
note: data are in 2013 US dollars
GDP - composition, by sector of originagriculture: 29.4%
industry: 18.9%
services: 51.7% (2013 est.)
Population below poverty line53% (2004)
Household income or consumption by percentage sharelowest 10%: 3%
highest 10%: 31.9% (2004)
Labor force - by occupationagriculture: 90%
industry and services: 10% (2003 est.)
Exports - commoditiestobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel
Exports - partnersCanada 10.6%, Zimbabwe 9.3%, Germany 7.3%, South Africa 6.6%, Russia 6.5%, US 6.1%, China 4.2% (2012)
Agriculture - productstobacco, sugarcane, cotton, tea, corn, potatoes, cassava (manioc, tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats
Budgetrevenues: $1.347 billion
expenditures: $1.4 billion (2013 est.)
Imports - commoditiesfood, petroleum products, semi-manufactures, consumer goods, transportation equipment
Imports - partnersSouth Africa 27%, China 16.6%, India 8.7%, Zambia 8.5%, Tanzania 5.1%, US 4.3% (2012)
Exchange ratesMalawian kwachas (MWK) per US dollar -
342.1 (2013 est.)
249.11 (2012 est.)
150.49 (2010 est.)
141.14 (2009)
142.41 (2008)
Exports$1.427 billion (2013 est.)
$1.224 billion (2012 est.)
Debt - external$1.556 billion (31 December 2013 est.)
$1.354 billion (31 December 2012 est.)
Fiscal year1 July - 30 June
Imports$2.42 billion (2013 est.)
$2.151 billion (2012 est.)
Industrial production growth rate2.8% (2013 est.)
Industriestobacco, tea, sugar, sawmill products, cement, consumer goods
Inflation rate (consumer prices)26.9% (2013 est.)
21.4% (2012 est.)
Labor force5.747 million (2007 est.)
Unemployment rateNA%
Distribution of family income - Gini index39 (2004)
Public debt50.8% of GDP (2013 est.)
62.7% of GDP (2012 est.)
Current account balance-$280.1 million (2013 est.)
-$315.1 million (2012 est.)
Reserves of foreign exchange and gold$364.2 million (31 December 2013 est.)
$246 million (31 December 2012 est.)
GDP (official exchange rate)$3.683 billion (2013 est.)
Stock of direct foreign investment - at home$NA
Stock of direct foreign investment - abroad$NA
Market value of publicly traded shares$753.6 million (31 December 2012 est.)
$1.384 billion (31 December 2011)
$NA (31 December 2010 est.)
Central bank discount rate15% (31 December 2009)
15% (31 December 2008)
Commercial bank prime lending rate29.5% (31 December 2013 est.)
32.4% (31 December 2012 est.)
Stock of domestic credit$1.243 billion (31 December 2013 est.)
$1.128 billion (31 December 2012 est.)
Stock of narrow money$585.3 million (31 December 2013 est.)
$457.6 million (31 December 2012 est.)
Stock of broad money$1.494 billion (31 December 2013 est.)
$1.153 billion (31 December 2012 est.)
Taxes and other revenues36.6% of GDP (2013 est.)
Budget surplus (+) or deficit (-)-1.4% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 73.6%
government consumption: 20.7%
investment in fixed capital: 13%
investment in inventories: 1.9%
exports of goods and services: 29.2%
imports of goods and services: -38.4%
(2013 est.)
Gross national saving8.2% of GDP (2013 est.)
8.2% of GDP (2012 est.)
1.9% of GDP (2011 est.)