Madagascar Economy Profile 2001

Economy - overview

Madagascar faces problems of chronic malnutrition, underfunded health and education facilities, a roughly 3% annual population growth rate, and severe loss of forest cover, accompanied by erosion. Agriculture, including fishing and forestry, is the mainstay of the economy, accounting for 30% of GDP and contributing more than 70% to export earnings. Industry features textile manufacturing and the processing of agricultural products. Growth in output in 1992-97 averaged less than the growth rate of the population. Growth has been held back by antigovernment strikes and demonstrations, a decline in world coffee prices, and the erratic commitment of the government to economic reform. The extent of government reforms, outside financial aid, and foreign investment will be key determinants of future growth. For 2001, growth should again be about 5%.

GDP (purchasing power parity)

purchasing power parity - $12.3 billion (2000 est.)

GDP - real growth rate

4.8% (2000 est.)

GDP - per capita (PPP)

purchasing power parity - $800 (2000 est.)

GDP - composition by sector

agriculture: 30%

industry: 14%

services: 56% (1999 est.)

Population below poverty line

70% (1994 est.)

Household income or consumption by percentage share

lowest 10%: 1.9%

highest 10%: 36.7% (1993)

Inflation rate (consumer prices)

10% (1999 est.)

Labor force

7 million (1999)

Unemployment rate

NA%

Budget

revenues: $553 million

expenditures: $735 million, including capital expenditures of $NA (1998 est.)

Industries

meat processing, soap, breweries, tanneries, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum, tourism

Industrial production growth rate

3% (2000 est.)

Electricity - production

810 million kWh (1999)

Electricity - production by source

fossil fuel: 37.04%

hydro: 62.96%

nuclear: 0%

other: 0% (1999)

Electricity - consumption

753.3 million kWh (1999)

Electricity - exports

0 kWh (1999)

Electricity - imports

0 kWh (1999)

Agriculture - products

coffee, vanilla, sugarcane, cloves, cocoa, rice, cassava (tapioca), beans, bananas, peanuts; livestock products

Exports

$538 million (f.o.b., 1998)

Exports - commodities

coffee, vanilla, shellfish, sugar; cotton cloth, chromite, petroleum products

Exports - partners

France 41%, US 19%, Germany 13%, UK 8%, Japan 6% (1999)

Imports

$693 million (f.o.b., 1998)

Imports - commodities

intermediate manufactures, capital goods, petroleum, consumer goods, food

Imports - partners

France 34%, Hong Kong 6%, China 6%, Japan 5%, Singapore 4% (1999)

Debt - external

$4.4 billion (1999)

Economic aid - recipient

$838 million (1997)

Currency

Malagasy franc (MGF)

Currency (code)

MGF

Exchange rates

Malagasy francs per US dollar - 6,656.3 (November 2000), 6,283.8 (1999), 5,441.4 (1998), 5,090.9 (1997), 4,061.3 (1996)

Fiscal year

calendar year