Economy - overview 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. 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.

GDP purchasing power parity - $10.3 billion (1997 est.)

GDP - real growth rate 3% (1997 est.)

GDP - per capita purchasing power parity - $730 (1997 est.)

GDP - composition by sector
agriculture: 33%
industry: 15%
services: 52% (1996 est.)

Inflation rate - consumer price index 19.8% (1996)

Labor force NA

Unemployment rate NA%

Budget
revenues: $477 million
expenditures: $706 million, including capital expenditures of $264 million (1996 est.)

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

Industrial production growth rate 3.8% (1993 est.)

Electricity - capacity 220,000 kW (1995)

Electricity - production 595 million kWh (1995)

Electricity - consumption per capita 43 kWh (1995)

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

Exports
total value: $493 million (f.o.b., 1996 est.)
commodities: coffee 45%, vanilla 20%, cloves, shellfish, sugar, petroleum products (1995 est.)
partners: France 41%, US, Japan, Italy (1995)

Imports
total value: $612 million (f.o.b., 1996 est.)
commodities: intermediate manufactures 30%, capital goods 28%, petroleum 15%, consumer goods 14%, food 13% (1995 est.)
partners: France 40%, Japan, Hong Kong, Singapore, US (1995)

Debt - external $4.4 billion (1996 est.)

Economic aid
recipient: ODA, $454 million (1992-96)

Currency 1 Malagasy franc (FMG) = 100 centimes

Exchange rates Malagasy francs (FMG) per US$1 - 5,302.9 (December 1997), 5,090.9 (1997), 4,061.3 (1996), 4,265.6 (1995), 3,067.3 (1994), 1,913.8 (1993)

Fiscal year calendar year

NOTE: The information regarding Madagascar on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Madagascar Economy 1998 information contained here. All suggestions for corrections of any errors about Madagascar Economy 1998 should be addressed to the CIA.