Overview

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

Over the past two years, the low economic growth in Malawi remained below population growth, resulting in a decline in per capita GDP. The agricultural sector, which employs most of the workforce and continues to rely primarily on rain-fed production, faces declining productivity and real income. Diversification efforts and increased irrigation are proceeding slowly, making the country more susceptible to economic and climatic shocks, and further exacerbating socioeconomic challenges.

Source: World Bank 2024