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Malawi

Malawi Economy Stats

Overview:

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 more than 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. Since 2005 President MUTHARIKA'S government has exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year Poverty Reduction and Growth Facility worth $56 million with the IMF. Improved relations with the IMF lead other international donors to resume aid as well. The government has 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 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 fell 23% in 2009. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
  • GDP > Real growth rate: GDP growth on an annual basis adjusted for inflation and expressed as a percent.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Tourist arrivals: International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases data are from tourism accommodation establishments. For some countries number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus a person who makes several trips to a country during a given period is counted each time as a new arrival."
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $1.03 billion 2013 158th out of 223
Exports $1.22 billion 2012 143th out of 189
Fiscal year 1 2013
GDP $4.26 billion 2012 141st out of 177
GDP > Composition by sector > Industry 16.9% 2012 174th out of 217
GDP > Per capita $906.65 per capita 2010 110th out of 118
GDP > Per capita > PPP $800.00 2012 180th out of 188
GDP > Purchasing power parity $14.11 billion 2012 137th out of 190
GDP > Real growth rate 1.9% 2012 126th out of 191
GDP per capita $268.05 2012 176th out of 177
Gross National Income $1.71 billion 2001 119th out of 158
Inflation rate > Consumer prices 21.4% 2012 7th out of 199
Population below poverty line 53% 2004 5th out of 19
Public debt 62.7% of GDP 2012 41st out of 149
Tourist arrivals 742,000 2008 97th out of 145

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011; World Tourism Organisation, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

Citation

"Malawi Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Malawi/Economy

NationMaster

Malawi Economy Profiles (Subcategories)

Adjusted savings 3 Innovation 34
Aid 3 International tourism 13
Balance of payments 34 Long-term debt 4
Bank and trade-related lending 4 Market capitalization of listed companies 4
Budget 10 Merchandise 4
Changes in net 4 Merchandise imports 4
Commercial service 4 Micro 4
Commercial service imports 4 National accounts 105
Companies 36 Natural gas 8
Consumption 22 Net current transfers 4
Currency 14 Net current transfers from abroad 6
Current account balance 5 Net errors and omissions 4
Current transfers 4 Net financial flows 28
Debt 87 Net income 4
Economic aid 3 Net income from abroad 6
Electricity 8 Net trade in goods 4
Entrepreneurship 12 Net trade in goods and services 4
Exports 3 Official development assistance and official aid 4
External balance on goods and services 7 Oil 10
External debt 215 Portfolio investment 12
Final 20 Poverty 24
Financial sector 33 Poverty and inequality 16
Foreign aid 42 Private nonguaranteed debt 4
Foreign direct investment 9 Public and publicly guaranteed debt service 6
GDP 41 Public and publicly guaranteed (PPG) debt 3
GDP growth 3 Purchasing power parity 11
GDP per capita 4 Reserves 6
GNI 12 Retail 3
Goods 4 Royalty and license fees 4
Goods imports 4 Savings 44
Government 7 Service 4
Gross capital formation 10 Service imports 4
Gross domestic savings 6 Services 10
Gross fixed capital formation 10 Spending 73
Gross national expenditure 9 Stocks traded 5
Gross savings 6 Tax 40
Gross value added at factor cost 9 Total 9
High-technology 4 Total debt service 6
Household final 23 Tourism 19
IBRD loans and IDA credits 4 Tourism expenditures 5
Income 24 Tourism receipts 5
Income payments 4 Tourist arrivals by region of origin 7
Income receipts 4 Trade 1004
Inequality 8 Trademark applications 3
Inflation 9 Use of IMF credit 4
Malawi ranked third for inflation rate > consumer prices amongst Hot countries in 2012.
Malawi ranked first for industrial > production growth rate amongst Christian countries in 2010.
Malawi ranked first for commercial bank prime lending rate amongst Former British colonies in 2012.
Malawi ranked second for GDP > composition by sector > agriculture amongst Heavily indebted countries in 2012.
Malawi ranked second last for GDP per capita amongst Landlocked countries in 2012.
Malawi ranked 18 places from the bottom for GDP amongst Sub-Saharan Africa in 2012.
Malawi has ranked last for GDP per capita > PPP > current international $ since 2002.

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