Economy
Among the 25 poorest countries in the world, Mali is a
landlocked country highly dependent on gold mining and agricultural exports for
revenue. The country's fiscal status fluctuates with gold and agricultural
commodity prices and the harvest. Mali remains dependent on foreign aid.
Economic activity is largely confined to the riverine area irrigated by the
Niger River and about 65% of its land area is desert or semidesert. About 10% of
the population is nomadic and about 80% of the labor force is engaged in farming
and fishing. Industrial activity is concentrated on processing farm commodities.
The government in 2011 completed an IMF extended credit facility program that
has helped the economy grow, diversify, and attract foreign investment. Mali is
developing its cotton and iron ore extraction industries to diversify foreign
exchange revenue away from gold. Mali has invested in tourism but security
issues are hurting the industry. Mali experienced economic growth of about 5%
per year between 1996-2010, but the global recession and a military coup caused
a decline in output in 2012. The interim government slashed public spending in
the context of a declining state of security and declining international aid
The Economy of Mali is based to a large extent on agriculture, with an
overwhelmingly rural population, many of whom are engaged in subsistence
agriculture. Mali is among the ten poorest nations of the world, is one of the
37 Heavily Indebted Poor Countries, and is a major
recipient of foreign aid from many sources, including multilateral
organizations (most significantly the World Bank, African
Development Bank, and Arab Funds), and bilateral programs funded by
the European Union, France, United States, Canada,
Netherlands, and Germany. Before 1991, the former Soviet Union, China and the Warsaw
Pact countries had been a major source of economic and military
aid. The per capita gross domestic product (GDP) of Mali was $820 in
1999. Mali's great potential wealth lies in mining and the production of agricultural
commodities, livestock, and fish. The most productive agricultural area lies
along the banks of the Niger River, the Inner Niger Delta and the southwestern region
around Sikasso.
overwhelmingly rural population, many of whom are engaged in subsistence
agriculture. Mali is among the ten poorest nations of the world, is one of the
37 Heavily Indebted Poor Countries, and is a major
recipient of foreign aid from many sources, including multilateral
organizations (most significantly the World Bank, African
Development Bank, and Arab Funds), and bilateral programs funded by
the European Union, France, United States, Canada,
Netherlands, and Germany. Before 1991, the former Soviet Union, China and the Warsaw
Pact countries had been a major source of economic and military
aid. The per capita gross domestic product (GDP) of Mali was $820 in
1999. Mali's great potential wealth lies in mining and the production of agricultural
commodities, livestock, and fish. The most productive agricultural area lies
along the banks of the Niger River, the Inner Niger Delta and the southwestern region
around Sikasso.