Economy of Malawi

Malawi is rated as one of the world's least developed countries. The economy is heavily dependant on agriculture, with about 90% of the population living in rural areas and involved in subsistence farming. Due to its heavy reliance on agricultural exports, Malawi's economy is vulnerable to a number of socioeconomic forces such as drought and declining trade.

The countries main agricultural exports are tobacco, tea and sugar. With tobacco accounting for over 60% of all exports, and the current western trend being a decrease in smoking, a potentially serious threat for Malawi's economic future exists.

In 2000, Malawi qualified for relief under the Heavily Indebted Poor Countries (HIPC) program and the economy depends heavily on assistance from the International Monetary Fund, the World Bank, as well as handouts from individual countries.

Major problems include government corruption and a poor road, telecommunications, and electricity infrastructure.

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