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Economy As a landlocked developing country (LLDC), Malawi’s economy is predominantly agro-based, with real prospects of and opportunities for economic diversification. Currently, Agriculture contributes about 30% of the gross domestic product (GDP); 15% contribution of GDP comes from Tobacco exports alone (CIA World Fact Book). Other key economic sectors in Malawi are manufacturing, wholesale and retail trade, Transport and Communications and Financial services (banks, insurance, real estate, etc.). The World Bank estimates that Malawi’s GDP growth in 2015 will be around 5.1%, while inflation, according to the International Monetary Fund (IMF), will average 24.16% (WB Country Outlook 2015 / IMF WEO 2014). Malawi’s economy continues on a recovery path in the aftermath of the economic crisis of 2012 which saw a contraction in Real GDP growth to 2.1%. The Government is currently intensifying efforts to diversify the GDP base, with focus on new priority areas of mining, agro-processing, tourism trade, energy and construction / infrastructure. Through the Malawi Investment and Trade Centre, a one-stop investment service centre, Malawi is courting investment partners through FDI and PPP. |