Madagascar Economy Profile 2008

Economy - overview

Having discarded past socialist economic policies, Madagascar has since the mid 1990s followed a World Bank- and IMF-led policy of privatization and liberalization. This strategy placed the country on a slow and steady growth path from an extremely low level. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing 80% of the population. Exports of apparel have boomed in recent years primarily due to duty-free access to the US. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. President RAVALOMANANA has worked aggressively to revive the economy following the 2002 political crisis, which triggered a 12% drop in GDP that year. Poverty reduction and combating corruption will be the centerpieces of economic policy for the next few years.

GDP (purchasing power parity)

$19.95 billion (2007 est.)

GDP (official exchange rate)

$7.306 billion (2007 est.)

GDP - real growth rate

6.3% (2007 est.)

GDP - per capita (PPP)

$1,000 (2007 est.)

GDP - composition by sector

agriculture: 27.3%
industry: 15.8%
services: 56.8% (2007 est.)

Population below poverty line

50% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 1.9%
highest 10%: 36.6% (2001)

Inflation rate (consumer prices)

10% (2007 est.)

Investment (gross fixed)

26.3% of GDP (2007 est.)

Labor force

7.3 million (2000)

Distribution of family income - Gini index

47.5 (2001)

Budget

revenues: $1.22 billion
expenditures: $1.555 billion (2007 est.)

Industries

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

Industrial production growth rate

6% (2007 est.)

Electricity - production

1.046 billion kWh (2005)

Electricity - consumption

973.2 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

92.18 bbl/day (2005 est.)

Oil - consumption

17,000 bbl/day (2005 est.)

Oil - imports

17,830 bbl/day (2004)

Oil - exports

363.9 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$1.145 billion (2007 est.)

Agriculture - products

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

Exports

$1.027 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

France 32.1%, US 25.3%, Germany 6.1%, Italy 5%, UK 4.1% (2006)

Imports

$2.005 billion f.o.b. (2007 est.)

Imports - commodities

capital goods, petroleum, consumer goods, food

Imports - partners

France 14.5%, China 12%, Iran 9.3%, Mauritius 5.6%, Hong Kong 4.7% (2006)

Reserves of foreign exchange and gold

$745 million (31 December 2007 est.)

Debt - external

$4.6 billion (2002)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA

Economic aid - recipient

$929.2 million (2005)

Currency (code)

ariary (MGA)

Exchange rates

Malagasy ariary per US dollar - 1,880 (2007), 2,161.4 (2006), 2,003 (2005), 1,868.9 (2004), 1,238.3 (2003)

Fiscal year

calendar year