Economy - overview 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 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.

GDP purchasing power parity - $14 billion (2001 est.)

GDP - real growth rate 5% (2001 est.)

GDP - per capita purchasing power parity - $870 (2001 est.)

GDP - composition by sector
agriculture: 34%
industry: 11%
services: 55% (1999 est.)

Population below poverty line 70% (1994 est.)

Household income or consumption by percentage share
lowest 10%: 2.2%
highest 10%: 37.3% (1997)

Distribution of family income - Gini index 46 (1997)

Inflation rate (consumer prices) 7% (2001 est.)

Labor force 7 million (1999)

Unemployment rate NA%

Budget
revenues: $553 million
expenditures: $735 million, including capital expenditures of $NA (1998 est.)

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

Industrial production growth rate 3% (2000 est.)

Electricity - production 820 million kWh (2000)

Electricity - production by source
fossil fuel: 36.59%
hydro: 63.41%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 762.6 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $680 million (f.o.b., 2000)

Exports - commodities coffee, vanilla, shellfish, sugar; cotton cloth, chromite, petroleum products

Exports - partners France 41%, US 21%, Germany 7%, Japan 4%, UK 1% (2000)

Imports $919 million (f.o.b., 2000)

Imports - commodities intermediate manufactures, capital goods, petroleum, consumer goods, food

Imports - partners France 38%, Hong Kong 10%, China 5%, Singapore 5%, Japan 3%

Debt - external $4.5 billion (2000)

Economic aid - recipient $838 million (1997)

Currency Malagasy franc (MGF)

Currency code MGF

Exchange rates Malagasy francs per US dollar - 6,531.4 (December 2001), 6,588.5 (2001), 6,767.5 (2000), 6,283.8 (1999), 5,441.4 (1998), 5,090.9 (1997)

Fiscal year calendar year

NOTE: The information regarding Madagascar on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Madagascar Economy 2002 information contained here. All suggestions for corrections of any errors about Madagascar Economy 2002 should be addressed to the CIA.