Publication

Youth Economic Opportunities Ecosystem Analysis Malawi Country Report

  • January 24, 2017

  • Publications, guides and communication materials

Summary

The Malawian economy is largely dependent on its agricultural sector, both for achieving economic growth and employment. The sector is largely rain fed with little diversity: the primary food crop is maize and the primary cash crop, accounting for 70% of all export earnings, is tobacco.1 Poor weather conditions and macroeconomic volatility have immediate consequences for Malawian economic performance. As the World Bank notes, ‘gross domestic product (GDP) growth in 2016 is estimated at 2.6%. In 2015, Malawi recorded a GDP growth rate of just 2.8%, as a result of both adverse weather conditions and macroeconomic instability.’2 In turn, the African Development Bank observes that ‘population growth of 2.8% a year will require consistent economic growth to reduce poverty and improve progress towards the Sustainable Development Goals.’3 Unfortunately, reduced GDP growth and high inflation in 2015 continued to undermine Malawian prospects for economic growth and poverty reduction.

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