Economy

Since the mid 1990s Madagascar has followed a World Bank and IMF led policy of privatisation 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 also 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. Poverty reduction and combating corruption will be the centre-pieces of economic policy for the next few years.

Facts and figures

GDP (purchasing power parity) $16.05 billion (est. 2005)
GDP real growth rate 5.1% (est. 2005)
GDP composition agriculture 28.7%, industry 16.5%, services 54.8% (est. 2005)
Labour force 7.3 million (2000)
Population below poverty line 50% (est. 2004)
Inflation rate (consumer prices) 15% (est. 2005)
Investment (gross fixed) 26.4% of GDP (est. 2005)
Budget revenues $703.6 million, expenditures: $853 million (est. 2005)
Agriculture products Coffee, vanilla, sugarcane, cloves, cocoa, rice, cassava (tapioca), beans, bananas, peanuts; livestock products
Industries Meat processing, soap, breweries, tanneries, sugar, textiles, glassware, cement, automobile assembly, paper, petroleum, tourism
Industrial production growth rate 3% (est. 2000)
Exports $951 million f.o.b. (est. 2005)
Export commodities Coffee, vanilla, shellfish, sugar, cotton cloth, chromite, petroleum products
Export partners US 30.3%, France 30.9%, Germany 8.6% (2005)
Imports $1.4 billion f.o.b. (est. 2005)
Import commodities Capital goods, petroleum, consumer goods, food
Import partners France 16%, China 10.6%, Hong Kong 5%, Iran 7.9%, Mauritius 6.5%, South Africa 5.9% (2005)
External debt $4.6 billion (2002)
Currency Madagascar Ariary (replaced the Malagasy Franc colonial currency in 2007)

Source: CIA World Factbook, 2006.
http://www.cia.gov/cia/publications/factbook/geos/ma.html

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