The Economy

Malawi's economy is agriculture based which accounts for about 30 percent of Gross National Product and more than 90 percent of the country's export earnings. At least 80 percent of agricultural produce comes from smallholder farmers on customary land. The rest is produced by commercial farmers on estates. The main crops grown in Malawi are maize, tobacco, tea, sugarcane, groundnuts, cotton, wheat, coffee, rice and pulses. Malawi is an exporter of primary produce and net importer of industrial goods. It's major exports include tobacco, tea, sugar and groundnuts while its major imports are intermediate (chemical and machineries) goods for industry.

Real GDP growth (2008) : 7.4%

Real GDP growth (2007) : 7.9%

Exports (FOB) – (2007) : US$ 704.6 million

Imports (CIF) – (2007) : US$ 1,272.4 million

Visible Balance (2007) : US$ - 567.8 million

Currency : Malawi Kwacha (MK)

US$ 1.00=MK 142.00 (November 2008)

Corporate tax rate (2008) : 30 %

Inflation Rate (August 2008) : 9.1%

Inflation Rate (September 2008) : 9.3%

Annual Inflation Rate (2007) : 7.9%

Annual Inflation Rate (2006) : 13.9%

Interest Rates (From 1^st November 2007): 15% down from 17.5%

GDP composition 2005 2006 2007

Agriculture : 28.3% 29.5% 30.6%

Construction : 4.4% 4.6% 4.7%

Manufacturing : 9.6% 9.3% 9.2%

Financial and Professional Services : 11.1% 11.3% 11.4%

Transport and Storage : 4.1% 4.1% 3.9%

Information and Communication : 2.9% 2.9% 2.8%

Mining and Quarrying : 1.6% 1.1% 1.0%