Gross Domestic Products, 2023

In 2023, Malawi’s real GDP grew by 1.9%, driven by improvements in the Electricity sector, which has wide-reaching links to various industries. Positive growth was also observed in Construction, Accommodation and Food Services, Transport, Finance and Insurance, and Health Services. However, slower overall growth was primarily due to the impact of Tropical Cyclone Freddy on the Agriculture sector, which affected industries connected to it. Additionally, the 44% devaluation of the Malawi Kwacha, driven by a foreign exchange crisis, contributed to a sharp rise in inflation, further slowing economic growth.

Real GDP Growth Developments Since 2017   

Malawi's GDP growth rose steadily from 2017 but declined in 2020 due to poor agricultural yields and the impact of COVID-19. The economy rebounded in 2021, growing by 4.56%, driven by the easing of COVID-19 restrictions, which revitalized various sectors. Contributing factors included improved energy production from new solar farms, enhanced electricity generation, favorable weather, and the Affordable Inputs Program (AIP) which boosted agricultural output. However, a decline occurred in 2022 due to the Covid-19 pandemic and reduced agricultural production which is a key contributor to GDP. In 2023, a modest growth was achieved, mainly due to improvements in the electricity sector, with strong performances in manufacturing, construction, transport, arts, and health services.

Real GDP percent Shares by Activity (2023)

Overall, agriculture remains the largest contributor to GDP, accounting for 21.7%, followed by manufacturing (11.5%), wholesale and retail trade (11.1%), and real estate (6.6%). These key industries continue to shape the foundation for Malawi’s national economic planning and development. This pattern has persisted for years, with agriculture consistently holding the largest share.