Overview: A landlocked country, Malawi ranks among the world's least developed with a per capita GDP of $180. 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. After two years of weak performance, economic growth improved significantly in 1988 as a result of good weather and a broadly based economic adjustment effort by the government. The closure of traditional trade routes through Mozambique continues to be a constraint on the economy.

GDP: $1.4 billion, per capita $180; growth rate 3.6% (1988)

Inflation rate (consumer prices): 31.5% (1988)

Unemployment rate: NA%

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

Exports: $292 million (f.o.b., 1988); commodities--tobacco, tea, sugar, coffee, peanuts; partners--US, UK, Zambia, South Africa, FRG

Imports: $402 million (c.i.f., 1988); commodities--food, petroleum, semimanufactures, consumer goods, transportation equipment; partners--South Africa, Japan, US, UK, Zimbabwe

External debt: $1.4 billion (December 1989 est.)

Industrial production: growth rate 6.4% (1988)

Electricity: 181,000 kW capacity; 535 million kWh produced, 60 kWh per capita (1989)

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

Agriculture: accounts for 40% of GDP; cash crops--tobacco, sugarcane, cotton, tea, and corn; subsistence crops--potatoes, cassava, sorghum, pulses; livestock--cattle and goats

Aid: US commitments, including Ex-Im (FY70-88), $182 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), $1.8 billion

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

Exchange rates: Malawian kwacha (MK) per US$1--2.6793 (January 1990), 2.7595 (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 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Malawi Economy 1990 information contained here. All suggestions for corrections of any errors about Malawi Economy 1990 should be addressed to the CIA.