The economy is predominantly agricultural - 96 per cent of the population work on the land. Maize is the main subsistence crop and the major exports are tobacco, tea and sugar. However, with recent poor harvests due to severe drought, exports have declined. Malawi has deposits of both coal and bauxite, but these are under-exploited at present. Manufacturing industry concentrates on consumer goods and construction materials.
All energy is produced by hydro-electric power.
There is a traditional migration of labour, mainly miners, to other countries, particularly South Africa. Per capita income is among the lowest in the world. Malawi is heavily reliant on foreign aid, which was curtailed when human rights abuses were rife. Following political reform, future assistance is more assured.