Overview: The economy is predominately agricultural and operates under a relatively free-enterprise environment, with about 90% of the population living in rural areas. Agriculture accounts for 40% of GDP and 90% of export revenues. In 1986 the economy deteriorated and GDP declined by 0.3% as a result of depressed international commodity prices, the high production costs of manufactured goods, and higher transportation costs brought about by the civil war in Mozambique. (Malawi is a landlocked country and must now ship goods through Durban, South Africa.) In 1986 the inflation rate rose to 20%.

GDP: $1.2 billion, per capita $170; growth rate - 0.3% (1986)

Inflation rate (consumer prices): 20% (1986)

Unemployment rate: NA%

Budget: revenues $246 million; expenditures $390 million, including capital expenditures of $97 million (FY88 est.)

Exports: $277 million (f.o.b., 1987); @m5commodities--tobacco, tea, sugar, coffee, peanuts; @m5partners--US, UK, Zambia, South Africa, FRG

Imports: $296 million (c.i.f., 1987); @m5commodities--food, petroleum, semimanufactures, consumer goods, transportation equipment; @m5partners--South Africa, Japan, US, UK, Zimbabwe

External debt: $1.3 billion (December 1988 est.)

Industrial production: growth rate 1.7% (1986)

Electricity: 172,000 kW capacity; 535 million kWh produced, 70 kWh per capita (1988)

Industries: agricultural processing (tea, tobacco, sugar), sawmilling, cement, consumer goods

Agriculture: cash crops--sugar, tea, coffee, peanuts, cotton; subsistence crops--corn, sorghum, millet, root crops; self-sufficient in food production under normal conditions

Aid: US commitments (FY70-87), $132 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $1.6 billion

Currency: Malawian kwacha (plural--kwacha); 1 Malawian kwacha (MK) = 100 tambala

Exchange rates: Malawian kwacha (MK) per US$1--2.6231 (January 1989), 2.5613 (1988), 2.2087 (1987), 1.8611 (1986), 1.7191 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding Malawi on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Malawi Economy 1989 information contained here. All suggestions for corrections of any errors about Malawi Economy 1989 should be addressed to the CIA.