Consumption Investments Govt.

Expenses Exports Imports

2010 208479 141527 193220 177246.94 194060.59
2011 221938 152298 205607 283112.08 308584.69
2012 276629 294682 463099 12785 23553.8
2013 296528 306230 490242 1387.9 2752.8
2014 315529 317939 520077 2876.5 1411
2015 332457 333158 549476 1491 2791
2016 354993 219144 583172 494550 1088481
Table 1
Note: the values are in Malawi Kwacha (MWK) and are Millions

2010 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Figure 1 showing the 2010 GDP components for Malawi.

Page 1 of 6
 2011 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Figure 2 showing the 2011 GDP for Malawi,

2012 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Figure 3 showing Malawi’s GDP for 2012

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 2013 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Figure 4 Showing Malawi’s GDP for 2013

2014 GDP Chart

2876.5
1411
315529

520077

317939

Consumption Investments Govt Expences Exports Inports

Finger 5 showing Malawi’s GDP 2014

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 2015 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Finger 6 showing Malawi’s GDP 2015

2016 GDP Chart

23553.8
12785
276629

463099

294682

Consumption Investments Govt Expences Exports Inports

Figure 7 Showing the Malawi’s GDP for 2016.

NB: All the above diagrams show the components of Malawi’s GDP from 2010 to 2016

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EXPLANATION OF THE TABLE AND CHARTS
Table 1 shows the Gross Domestic product of Malawi from 2010 to 2016. The table shows that
the consumption of Malawi have been increasing due to the increase in population of the
country. This increasing population has also led to the increase of the governments
expenditures for these seven years. From 2010, consumption has been slightly increasing. In
the same way the government’s expenses have also slightly been increasing thou there was a
rapid increase between 2011 and 2012. From 2012 to 2016 the expenses have been increasing
slightly. This rapid increase was there due to different government projects e.g. the
construction of roads in the country in orders to support the country’s growing population.
Malawi as a country mainly depend on agricultural product as it main export. This means that
the higher the produce the higher the exports. In 2010 and 2011 the country had a high
produce hence the high figure for export. From 2013 to 2015 there was poor rainfall which led
to low agricultural produce hence low amount of exports in the country for this years. In 2016
the country there was hid export due to good agricultural production. Malawi cannot provide
enough to the people there for it imports goods and services in order to supplement its
economy. Again in 2010 and 2011 the imports were high than in the other years. Since the
exports were low from 2012 to 2015 the government had to lower the imports in order to
lower its deficit in its current account. For all the seven years Malawi’s current account has
been running on a deficit, since the imports have always been higher than the exports.
All economies have investment in which they do invest in order to save money and make profits
out of the invested money. Malawi’s investments have been increasing from 2010 to 2015 but
in 2016 the investments amount dropped. This was due to the closure of most of the
investments that the government had invested in e.g. the closure of the Malawi Servings Bank
and Inde Bank where the government had invested in hence the government made a loose in
the investments.
In conclusion, Malawi’s has been working towards single figure GDP percentage by reducing its
deficits in the current account. So far the government has managed to drop the GDP to 10.4%
and it’s still dropping.

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References
 Christopher T. S. Ragan; Recherd G. Lipsey. (2011). Economics (14th ed.). Toronto:
Pearson Canada Inc.

 Layton, A. (2009). Economics for Today (3rd ed.). Victoria: Cengage Learning.

 Malawi, R. B. (2010 - 2016). Annual Finacial Report. Lilongwe: RBM.

 Tucker, I. B. (2011). Microeconomics for Today (7th ed.). Boulevard: South-Western
Cengage Learning.

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