Madagascar Economy Profile 2009

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)

$20.13 billion (2008 est.)
$18.82 billion (2007 est.)
$17.72 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$9.254 billion (2008 est.)

GDP - real growth rate

7% (2008 est.)
6.2% (2007 est.)
5% (2006 est.)

GDP - per capita (PPP)

$1,000 (2008 est.)
$1,000 (2007 est.)
$900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 26.2%
industry: 15.2%
services: 58.5% (2008 est.)

Population below poverty line

50% (2004 est.)

Labor force

9.504 million (2007)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 41.5% (2005)

Distribution of family income - Gini index

47.5 (2001)
38.1 (1999)

Investment (gross fixed)

26.6% of GDP (2008 est.)

Budget

revenues: $1.612 billion
expenditures: $2.05 billion (2008 est.)

Inflation rate (consumer prices)

9.2% (2008 est.)
10.3% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
45% (31 December 2007)

Stock of money

$1.217 billion (31 December 2008)
$1.161 billion (31 December 2007)

Stock of quasi money

$667.2 million (31 December 2008)
$577.4 million (31 December 2007)

Stock of domestic credit

$820.3 million (31 December 2008)
$767.5 million (31 December 2007)

Industries

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

Industrial production growth rate

3% (2008 est.)

Electricity - production

1.045 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 36.1%
hydro: 63.9%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

907 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

92 bbl/day (2007 est.)

Oil - consumption

18,190 bbl/day (2006 est.)

Oil - imports

17,100 bbl/day (2005)

Oil - exports

480.3 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$1.124 billion (2008 est.)
-$807 million (2007 est.)

Agriculture - products

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

Exports

$1.155 billion (2008 est.)
$1.095 billion (2007 est.)

Exports - commodities

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

Exports - partners

France 28.8%, US 23.7%, Netherlands 7%, Germany 6.3%, China 4.8% (2008)

Imports

$2.419 billion (2008 est.)
$1.944 billion (2007 est.)

Imports - commodities

capital goods, petroleum, consumer goods, food

Imports - partners

China 16.3%, France 12.1%, Iran 8.3%, South Africa 6%, Mauritius 4.3% (2008)

Reserves of foreign exchange and gold

$982.3 million (31 December 2008 est.)
$846.7 million (31 December 2007 est.)

Debt - external

$2.117 billion (31 December 2008 est.)
$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)

Currency (code)

MGF

Exchange rates

Malagasy ariary (MGA) per US dollar - 1,654.78 (2008 est.), 1,880 (2007), 2,161.4 (2006), 2,003 (2005), 1,868.9 (2004)

Fiscal year

calendar year