(1) 770 471

Flag description:
three equal horizontal bands of black (top), red, and green with a
radiant, rising, red sun centered in the black band

Government - note:
the executive exerts considerable influence over the legislature

Economy Malawi

Economy - overview:
Landlocked Malawi ranks among the world's least developed
countries. The economy is predominately agricultural, with about 90%
of the population living in rural areas. Agriculture accounted for
nearly 36% of GDP and 80% of export revenues in 2005. The
performance of the tobacco sector is key to short-term growth as
tobacco accounts for over 60% of exports. The economy depends on
substantial inflows of economic assistance from the IMF, the World
Bank, and individual donor nations. In late 2000, Malawi was
approved for relief under the Heavily Indebted Poor Countries (HIPC)
program. The government faces strong 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. Malawi's recent fiscal policy
performance has been very strong, but a serious drought in 2005 and
2006 heightened pressure on the government to increase spending.

GDP (purchasing power parity):
$8.038 billion (2006 est.)

GDP (official exchange rate):
$2.172 billion (2006 est.)

GDP - real growth rate:
7% (2006 est.)

GDP - per capita (PPP):
$600 (2006 est.)

GDP - composition by sector:
agriculture: 35.4%
industry: 17.6%
services: 47% (2006 est.)

Labor force:
4.5 million (2001 est.)

Labor force - by occupation:
agriculture: 90%
industry and services: 10% (2003 est.)

Unemployment rate:
NA%

Population below poverty line:
55% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index:
50.3 (1997)

Inflation rate (consumer prices):
15.1% (2006 est.)

Investment (gross fixed):
9.2% of GDP (2006 est.)

Budget:
revenues: $818.4 million
expenditures: $895.9 million; including capital expenditures of $NA
(2006 est.)

Public debt:
68.4% of GDP (2006 est.)

Agriculture - products:
tobacco, sugarcane, cotton, tea, corn, potatoes, ca