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Introduction - Madagascar:
Location - Madagascar:
People - Madagascar:
Government - Madagascar:
Economy - Madagascar:

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

$17.27 billion (2006 est.)

Gdp official exchange rate

$5.059 billion (2006 est.)

Gdp real growth rate

4.7% (2006 est.)

Gdp per capita ppp

$900 (2006 est.)

Gdp composition by sector

agriculture: 26.9%
industry: 16.5%
services: 56.6% (2006 est.)

Labor force

7.3 million (2000)

Population below poverty line

50% (2004 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 29% (1999)

Distribution of family income gini index

47.5 (2001)

Inflation rate consumer prices

12% (2006 est.)

Investment gross fixed

26.3% of GDP (2006 est.)


revenues: $879.9 million
expenditures: $1.147 billion; including capital expenditures of $331 million (2006 est.)

Agriculture products

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


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

Industrial production growth rate

3% (2000 est.)

Electricity production

984 million kWh (2004)

Electricity consumption

915.1 million kWh (2004)

Electricity exports

0 kWh (2004)

Electricity imports

0 kWh (2004)

Oil production

90.59 bbl/day (2004 est.)

Oil consumption

14,500 bbl/day (2004 est.)

Oil exports

NA bbl/day

Oil imports

NA bbl/day

Oil proved reserves

0 bbl (1 January 2005)

Natural gas production

0 cu m (2004 est.)

Natural gas consumption

0 cu m (2004 est.)

Natural gas proved reserves

0 cu m (1 January 2005 est.)

Current account balance

-$504 million (2006 est.)


$993.5 million f.o.b. (2006 est.)

Exports commodities

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

Exports partners

France 32%, US 25.3%, Germany 6%, Italy 5%, UK 4.1% (2006)


$1.544 billion f.o.b. (2006 est.)

Imports commodities

capital goods, petroleum, consumer goods, food

Imports partners

France 13.4%, China 11.6%, Iran 9%, Mauritius 7.4%, Hong Kong 4.6% (2006)

Reserves of foreign exchange and gold

$563 million (2006 est.)

Debt external

$4.6 billion (2002)

Economic aid recipient

$354 million (2001)

Currency code

Madagascar ariary (MGA)

Exchange rates

Malagasy ariary per US dollar - 2,161.4 (2006), 2,003 (2005), 1,868.9 (2004), 1,238.3 (2003), 1,366.4 (2002)

Communications - Madagascar:
Transportation - Madagascar:
Military - Madagascar:
This page was last updated on 16 September, 2007
Source: CIA >>>

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