The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas.

The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations.

[14][15] The country also relies heavily on tea, sugarcane and coffee, with these three plus tobacco making up more than 90% of Malawi's export revenue.

Traditionally Malawi has been self-sufficient in its staple food, maize (corn), and during the 1980s it exported substantial quantities to its drought-stricken neighbors.

Smallholder farmers produce a variety of crops, including maize, beans, rice, cassava, tobacco, and groundnuts (peanuts).

Malawi's economic reliance on the export of agricultural commodities renders it particularly vulnerable to external shocks such as declining terms of trade and drought.

High transport costs, which can comprise over 30% of its total import bill, constitute a serious impediment to economic development and trade.

Other challenges include a paucity of skilled labor, difficulty in obtaining expatriate employment permits, bureaucratic red tape, corruption, and inadequate and deteriorating road, electricity, water, and telecommunications infrastructure which hinder economic development in Malawi.

However, recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in railroad and telecommunications, have begun to render the investment environment more attractive.

The government's attempts to diversify the agriculture sector and move up the global value chain have been seriously constrained by poor infrastructure, an inadequately trained work force and a weak business climate.

Notable industries are tourism, retail, transport, education, health services, telecommunication and the banking sector.

The Government of Malawi holds shares in many important companies, such as Malawian Airlines (51%) and Press Corporation Limited.

Malawi has undertaken economic structural adjustment programs supported by the World Bank (IBRD), the International Monetary Fund (IMF), and other donors since 1981.

Broad reform objectives include stimulation of private sector activity and participation through the elimination of price controls and industrial licensing, liberalization of trade and foreign exchange, rationalization of taxes, privatization of state-owned enterprises, and civil service reform.

Malawi qualified for Heavily Indebted Poor Country (HIPC) debt relief and is in the process of refining its poverty reduction strategy.

[citation needed] In 2006, in response to disastrously low agricultural harvests, Malawi, through an initiative by the late President Bingu Mutharika, an economist by profession, began a program of fertilizer subsidies that were designed to re-energize the land and boost crop production.

Agriculture - products: tobacco, sugar cane, cotton, tea, maize, potatoes, cassava (tapioca), sorghum, pulses; cattle, goats Exports: $1.427 billion (2013 est.)

Exports - commodities: tobacco, tea, sugar, cotton, coffee, peanuts, wood products, apparel, uranium and its compounds Exports - partners: Canada 10.6%, Zimbabwe 9.3%, Germany 7.3%, South Africa 6.6%, Russia 6.5%, US 6.1%, China 4.2% (2012) Imports: $2.42 billion (2013 est.)

Economic aid - recipient: $575.3 million (2005) Foreign direct investment - inflow $129.5 million (2014) Currency: 1 Malawian kwacha (MK) = 100 tambala Exchange rates: Malawian kwachas per US dollar -730.00 (20/June/2016), 460.00 (20/Jan/2015), 360.00 (6/Feb/2013), 165.961 (1/Sep/2011), 145.179 (2009), 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003), 76.687 (2002) Fiscal year: 1 July - 30 June This article incorporates public domain material from The World Factbook.