Economic overview Madagascar, in 36 editions.

Madagascar is one of the poorest countries in the world. During the period 1980-85 it had a population growth of 3% a year and a - 0.4% GDP growth rate. Agriculture, including fishing and forestry, is the mainstay of the economy, accounting for over 40% of GDP, employing about 85% 80% of the labor force, and contributing to more than 70% to of total export earnings. Industry is largely confined to the processing of agricultural products and textile manufacturing; in 1988 1990 it contributed accounted for only 16% to of GDP and employed 3% of the labor force. Industrial development has been hampered by government policies that have restricted imports of equipment and spare parts and put strict controls on foreign-owned enterprises. In 1986 the government introduced a five-year development plan that stresses self-sufficiency in food (mainly rice) by 1990, increased production for exports, and reduced energy imports.

Madagascar is one of the poorest countries in the world. During the period 1980-85 it had a population growth of 3% a year and a - 0.4% GDP growth rate. Agriculture,
including fishing and forestry, is the mainstay of the economy, accounting
for over 40% of GDP, employing about 80% of the labor force, and
contributing to more than 70% of total export earnings. Industry is largely
confined to the processing of agricultural products and textile
manufacturing; in 1990 it accounted for only 16% of GDP and employed 3% almost
5% of the labor force. In 1986 the government introduced a five-year
development plan that stresses stressed self-sufficiency in food (mainly rice) by
1990, increased production for exports, and reduced energy imports. After
mid-1991, however, output dropped sharply because of protracted
antigovernment strikes and demonstrations for political reform.

Madagascar is one of the poorest countries in the world. Agriculture,
including fishing and forestry, is the mainstay of the economy, accounting
for over 40% of GDP, employing about 80% 30% of the labor force, GDP and
contributing to more than 70% of total export
earnings. Industry is largely
confined to the processing of agricultural
products and textile
manufacturing; in 1990 1991 it accounted for only 16% 13% of GDP and employed almost
5% of the labor force. GDP. In 1986 the government introduced a five-year
development plan that
stressed self-sufficiency in food (mainly rice) by
1990, increased
production for exports, and reduced energy imports. After
mid-1991, however,
output dropped sharply because of protracted
antigovernment strikes and
demonstrations for political reform.

Madagascar is one of the poorest countries in the world. Agriculture,
including fishing and forestry, is the mainstay of the economy, accounting
accounting for over 30% of GDP and contributing to more than 70% of total export
export earnings. Industry is largely confined to the processing of agricultural
agricultural products and textile manufacturing; in 1991 it accounted
for only 13% of
GDP. In 1986 the government introduced a five-year
development plan that
stressed self-sufficiency in food (mainly rice)
by 1990, increased
production for exports, and reduced energy imports. After mid-1991, however,
Subsequently, growth in output dropped sharply has been held back because of
protracted antigovernment strikes and
demonstrations for political
reform.

Madagascar is one of the poorest countries in the world. Agriculture, world,
suffering from chronic malnutrition, underfunded health and education
facilities, a 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 over 30%
of GDP and contributing more than 70% of total
export earnings.
Industry is largely confined to the processing of
agricultural
products and textile manufacturing; in 1991 it accounted
for only 13%
of GDP. In 1986 the government introduced a five-year
development plan
that stressed self-sufficiency in food (mainly rice)
by 1990,
increased production for exports, and reduced energy imports.
Subsequently, growth in output has been held back because of
protracted antigovernment strikes and demonstrations for political
reform. Since 1993, corruption and political instability have caused
the economy and infrastructure to decay further. Since April 1994, the
government commitment to economic reforms has been erratic. Enormous
obstacles stand in the way of Madagascar's realizing its considerable
growth potential.

Madagascar is one of the poorest countries in
the world,
suffering from 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 over 30%
35% of GDP and contributing more than 70% of total
export earnings.
Industry is largely confined to the processing of agricultural
agricultural products and textile manufacturing; in 1991 it accounted accounts for only 13% 15%
of GDP. In 1986 1986, the government introduced a five-year development plan
plan that stressed self-sufficiency in food (mainly rice) by 1990,
increased production for exports, export, and reduced energy imports.
Subsequently, growth in output has been held back because of
protracted antigovernment strikes and demonstrations for political
reform. Since 1993, corruption and political instability have caused
the economy and infrastructure to decay further. Since April 1994, the
the government commitment to economic reforms has been erratic. Enormous
Enormous obstacles stand in the way of Madagascar's realizing its considerable
considerable growth potential.

Madagascar is one of the poorest countries in
the world, suffering suffers from 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 35% 33% of GDP and contributing
more than 70% of
to export earnings. Industry is largely confined to features the processing of
agricultural products and textile manufacturing; it accounts for 15% manufacturing. Growth in output in
1992-95 averaged only 1.4%, less than half the growth rate of GDP. In 1986, the government introduced a five-year development
plan that stressed self-sufficiency in food (mainly rice) by 1990,
increased production for export, and reduced energy imports.
Subsequently, growth in output population. Growth has been held back because of
protracted by antigovernment strikes and demonstrations for political
reform. Since 1993, corruption demonstrations, a decline in world coffee demand, and political instability have caused
the economy and infrastructure to decay further. Since April 1994, erratic
commitment of the government commitment to economic reforms has been erratic.
Enormous reform. Formidable obstacles
stand in the way of Madagascar's realizing its
considerable growth potential.
potential; the extent of government reforms, outside financial aid,
and foreign investment will be key determinants.

Madagascar suffers from 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 33% of GDP and contributing
more than 70% to export earnings. Industry features textile
manufacturing and the processing of
agricultural products and textile manufacturing. products. Growth in
output in
1992-95 1992-97 averaged only 1.4%, less than half the growth rate of the
population. Growth has been held back by antigovernment strikes and
demonstrations, a decline in world coffee demand, and the erratic
commitment of the government to economic reform. Formidable obstacles
stand in the way of Madagascar's realizing its considerable growth
potential; the extent of government reforms, outside financial aid,
and foreign investment will be key determinants.

Madagascar suffers from 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 33% 32% 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 demand, and the erratic
commitment of the government to economic reform. Formidable obstacles
obstacles stand in the way of Madagascar's realizing its
considerable growth
potential; the extent of government reforms,
outside financial aid,
and foreign investment will be key
determinants.

Madagascar suffers from 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 32% 34% 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 demand, and the erratic
commitment of the government to economic reform. Formidable
obstacles stand in the way of Madagascar's realizing its
considerable growth potential; the extent of government reforms,
outside financial aid, and foreign investment will be key
determinants. Growth should be in the 5% range in 2000-01.

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 34% 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 demand, prices, and the erratic commitment of the government to economic reform. Formidable obstacles stand in the way of Madagascar's realizing its considerable growth potential; the The extent of government reforms, outside financial aid, and foreign investment will be key determinants. Growth determinants of future growth. For 2001, growth should again be in the 5% range in 2000-01. about 5%.

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% one-third 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%.

Having discarded past socialist economic policies, Madagascar has since the mid 1990s followed a World Bank and IMF led policy of privatization and liberalization, which liberalization. This strategy has placed the country on a slow and steady growth path. 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 four-fifths of the population. Export earnings primarily are earned Exports of apparel have boomed in recent years primarily due to duty-free access to the small industrial sector, which features textile manufacturing and agriculture processing. United States. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel are serious concerns. The separatist political crisis of 2002 undermined macroeconomic stability, with President RAVALOMANANA has worked aggressively to revive the estimated economy following the 2002 political crisis, which triggered a 12% drop in output being subject to a wide margin of error. GDP that year. Poverty reduction and combating corruption will be the centerpiece centerpieces of economic policy for the next few years.

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 has 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 four-fifths 80% of the population. Exports of apparel have boomed in recent years primarily due to duty-free access to the United States. 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.

Having discarded past socialist economic policies, Madagascar has since the mid 1990s followed a World Bank Bank- and IMF led IMF-led policy of privatization and liberalization. This strategy has 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 United States. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel 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.

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 United States. 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.

Having discarded past After discarding socialist economic policies, Madagascar has since policies in the mid 1990s mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization. liberalization that has been undermined since the start of the political crisis. 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. 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. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. Former 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 current political crisis which began in early 2009 has dealt additional blows to the centerpieces economy. Tourism dropped more than 50% in 2009, compared with the previous year, and many investors are wary of economic policy for entering the next few years. uncertain investment environment.

After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization that has been undermined since the start of the political crisis. 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. However, US, 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. 2010 and a sharp fall in textile production. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. Former President RAVALOMANANA worked aggressively to revive the economy following the 2002 political crisis, which triggered a 12% drop in GDP that year. The current political crisis crisis, which began in early 2009 2009, has dealt additional blows to the economy. Tourism dropped more than 50% in 2009, 2009 compared with the previous year, and many investors are wary of entering the uncertain investment environment. Growth was anemic during 2010 to 2012 although expansion in mining and agricultural sectors is expected to contribute to more growth in 2013.

After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization that has been undermined since the start of the political crisis. 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 boomed in recent years primarily due to duty-free access to the US, US; 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 and a sharp fall in textile production. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel, are serious concerns. The current political crisis, which began in early 2009, has dealt additional blows to the economy. Tourism dropped more than 50% in 2009 compared with the previous year, and many investors are wary of entering the uncertain investment environment. Growth was anemic slow during 2010 to 2012 2013 although expansion in mining and agricultural sectors is expected to contribute to more growth in 2013. 2014. International organizations and foreign donors are expected to resume development aid to Madagascar once RAJAONARIMAMPIANINA appoints a new government.

After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization that has been undermined since until the start onset of the a political crisis. This crisis , which lasted from 2009-2013 . The free market strategy had previously 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. starting point. Exports of apparel boomed in recent years primarily due to after gaining duty-free access to the US; 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 and 2010, a sharp fall in textile production. 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. 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 the use of firewood as the primary source of fuel, are serious concerns. The current political crisis, which began in early 2009, has dealt additional blows Many investors remain wary of investing for fear of a return to the economy. Tourism dropped more than 50% political instability in 2009 compared with the previous year, country and many investors are wary because of entering weaknesses in the uncertain investment business environment. Growth was slow during 2010 to 2013 although expansion Expansion in mining and agricultural sectors is expected to contribute contributed to more growth in 2014. International organizations and foreign donors are expected to resume resumed development aid to Madagascar once after RAJAONARIMAMPIANINA appoints appointed a new government. government in mid-2014, however full-scale assistance will require further policy reforms, particularly on addressing rampant corruption.

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 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 , crisis, which lasted from 2009-2013 . 2009 to 2013. The free market strategy had previously 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; jobs.
Madagascar regained AGOA access in January 2015 following the democratic election of a new President president the previous year. 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 In November 2015, the use of firewood as International Monetary Fund (IMF) approved a Rapid Credit Facility to Madagascar worth about $42.1 million to help the primary source of fuel, are serious concerns. Many investors remain wary of investing for fear government meet its balance of payments needs. The IMF also approved a return staff monitoring program to political instability in the country guide policy implementation and because of weaknesses in indicated that Madagascar must demonstrate the business environment. Expansion in mining and agricultural sectors contributed capability to growth in 2014. International organizations and foreign donors resumed development aid sustain reforms to Madagascar after RAJAONARIMAMPIANINA appointed qualify for future requests for a new government in mid-2014, however full-scale assistance will require further policy reforms, particularly on addressing rampant corruption. credit facility.

Madagascar 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) 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 also approved a staff monitoring program to guide policy implementation and indicated judged that Madagascar must demonstrate had demonstrated satisfactory performance on macroeconomic performance and structural reforms, and in mid-2016 approved another $304 million extended credit facility for the capability to sustain reforms country. GDP growth is expected around 2.8% per year in 2016-17, due to qualify for future requests for a credit facility. underperformance in agriculture.

Madagascar is a free market mostly unregulated economy with many untapped natural resources, but no capital markets, a weak judicial system, poorly enforced contracts, and rampant government corruption. The economy country faces long-term challenges to improve education, healthcare, and the environment. environment to boost long-term economic growth. 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 bushfires, slash-and-burn clearing techniques, and the use of firewood as the primary source of fuel, are serious concerns.
concerns to the agriculture dependent economy. 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 coup d’état led many nations, including the United States, to 2013. suspend non-humanitarian aid until a democratically-elected president was inaugurated in 2014. The free market pre-coup 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 market in 2000; 2000 under the African Growth and Opportunity Act (AGOA); however, Madagascar's failure to comply with the requirements of the African Growth and Opportunity Act (AGOA) 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.
jobs, and a GDP drop of nearly 11%. Madagascar regained AGOA access in January 2015 following and ensuing growth has been slow and fragile. Madagascar produces around 80% of the democratic election world’s vanilla and its reliance on this commodity for most of its foreign exchange is a new president the previous year. In November 2015, significant source of vulnerability. Economic reforms have been modest and the IMF approved a Rapid Credit Facility to Madagascar worth about $42.1 million to help country’s financial sector remains weak, limiting the government meet its balance use of payments needs. The monetary policy to control inflation. An ongoing 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 program aims to underperformance in agriculture. strengthen financial and investment management capacity.

Madagascar is a mostly unregulated economy with many untapped natural resources, but no capital markets, a weak judicial system, poorly enforced contracts, and rampant government corruption. The country faces challenges to improve education, healthcare, and the environment to boost long-term economic growth. 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 bushfires, slash-and-burn clearing techniques, and the use of firewood as the primary source of fuel, are serious concerns to the agriculture dependent economy.
After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization until a 2009 coup d’état led many nations, including the United States, to suspend non-humanitarian aid until a democratically-elected president was inaugurated in 2014. The pre-coup 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 market in 2000 under the African Growth and Opportunity Act (AGOA); however, Madagascar's failure to comply with the requirements of the AGOA led to the termination of the country's duty-free access in January 2010, a sharp fall in textile production, a loss of more than 100,000 jobs, and a GDP drop of nearly 11%.
Madagascar regained AGOA access in January 2015 and ensuing growth has been slow and fragile. Madagascar produces around 80% of the world’s vanilla and its reliance on this commodity for most of its foreign exchange is a significant source of vulnerability. Economic reforms have been modest and the country’s financial sector remains weak, limiting the use of monetary policy to control inflation. An ongoing IMF program aims to strengthen financial and investment management capacity.