Flag of Madagascar

Madagascar Economy Profile 2017

Home > Factbook > Countries > Madagascar

Economy - overviewMadagascar is a free market economy with many untapped natural resources, but no capital markets, a weak judicial system, poorly enforced contracts, and rampant government corruption. The economy faces long-term challenges to improve education, healthcare, and the environment. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing roughly 80% of the population. Deforestation and erosion, aggravated by bushfire and the use of firewood as the primary source of fuel, are serious concerns.

After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization until the onset of a political crisis, which lasted from 2009 to 2013. The free market strategy had placed the country on a slow and steady growth path from an extremely low starting point. Exports of apparel boomed after gaining duty-free access to the US in 2000; however, Madagascar's failure to comply with the requirements of the African Growth and Opportunity Act (AGOA) led to the termination of the country's duty-free access in January 2010, a sharp fall in textile production, and a loss of more than 100,000 jobs.

Madagascar regained AGOA access in January 2015 following the democratic election of a new president the previous year. In November 2015, the International Monetary Fund (IMF) approved a Rapid Credit Facility to Madagascar worth about $42.1 million to help the government meet its balance of payments needs. The IMF judged that Madagascar had demonstrated satisfactory performance on macroeconomic performance and structural reforms, and in mid-2016 approved another $304 million extended credit facility for the country. GDP growth is expected around 2.8% per year in 2016-17, due to underperformance in agriculture.
GDP (purchasing power parity)$37.48 billion (2016 est.)
$36 billion (2015 est.)
$34.91 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$9.74 billion (2016 est.)
GDP - real growth rate4.1% (2016 est.)
3.1% (2015 est.)
3.3% (2014 est.)
GDP - per capita (PPP)$1,500 (2016 est.)
$1,500 (2015 est.)
$1,500 (2014 est.)
note: data are in 2016 dollars
Gross national saving13% of GDP (2016 est.)
11.2% of GDP (2015 est.)
15.3% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 77.5%
government consumption: 10.1%
investment in fixed capital: 15.3%
investment in inventories: 0%
exports of goods and services: 30.9%
imports of goods and services: -33.9% (2016 est.)
GDP - composition by sectoragriculture: 24.8%
industry: 16.3%
services: 58.9% (2016 est.)
Population below poverty line70.7% (2012 est.)
Labor force12.98 million (2016 est.)
Unemployment rateNA% (2015 est.)
3.6% (2014 est.)
Unemployment, youth ages 15-24total: 2.6%
male: 2.2%
female: 3% (2012 est.)
Household income or consumption by percentage sharelowest 10%: 2.2%
highest 10%: 34.7% (2010 est.)
Distribution of family income - Gini index41 (2012)
46.9 (2001)
Budgetrevenues: $1.519 billion
expenditures: $1.649 billion (2016 est.)
Taxes and other revenues15.6% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-1.3% of GDP (2016 est.)
Public debt34.9% of GDP (2016 est.)
37.4% of GDP (2015 est.)
Inflation rate (consumer prices)6.7% (2016 est.)
7.4% (2015 est.)
Central bank discount rate8.3% (31 December 2016)
8.7% (31 December 2015)
Commercial bank prime lending rate62% (31 December 2016 est.)
60% (31 December 2015 est.)
Stock of narrow money$1.078 billion (31 December 2016 est.)
$960 million (31 December 2015 est.)
Stock of broad money$2.699 billion (31 December 2016 est.)
$2.341 billion (31 December 2015 est.)
Stock of domestic credit$1.206 billion (31 December 2016 est.)
$1.255 billion (31 December 2015 est.)
Market value of publicly traded shares$NA
Agriculture - productscoffee, vanilla, sugarcane, cloves, cocoa, rice, cassava (manioc, tapioca), beans, bananas, peanuts; livestock products
Industriesmeat processing, seafood, soap, beer, leather, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum, tourism, mining
Industrial production growth rate2.4% (2016 est.)
Current Account Balance-$223 million (2016 est.)
-$186 million (2015 est.)
Exports$3.096 billion (2016 est.)
$3.124 billion (2015 est.)
Exports - commoditiescoffee, vanilla, shellfish, sugar, cotton cloth, clothing, chromite, petroleum products
Exports - partnersFrance 15.2%, US 12.7%, China 7.1%, South Africa 5.6%, Japan 5.5%, Netherlands 5.3%, India 5.1%, Germany 5.1%, Belgium 5% (2015)
Imports$3.386 billion (2016 est.)
$3.462 billion (2015 est.)
Imports - commoditiescapital goods, petroleum, consumer goods, food
Imports - partnersChina 24.8%, France 10.4%, Bahrain 5.6%, India 5.6%, Kuwait 4.5%, Mauritius 4.5%, South Africa 4% (2015)
Reserves of foreign exchange and gold$1.076 billion (31 December 2016 est.)
$814.9 million (31 December 2015 est.)
Debt - external$2.563 billion (30 June 2016 est.)
$2.526 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$6.461 billion (2014 est.)
$6.462 billion (2013 est.)
Stock of direct foreign investment - abroad$NA
Exchange ratesMalagasy ariary (MGA) per US dollar -
3,243.4 (2016 est.)
2,933.5 (2015 est.)
2,933.5 (2014 est.)
2,414.8 (2013 est.)
2,195 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017