Economy
Economic overview:
Madagascar is one of the poorest countries in the world, suffering 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 35% of GDP and contributing more than 70% of export earnings. Industry is largely confined to the processing of agricultural products and textile manufacturing; it accounts for 15% of GDP. In 1986, the government introduced a five-year development plan that stressed self-sufficiency in food (mainly rice) by 1990, increased production for export, and reduced energy imports. Subsequently, growth in output has been held back because of protracted antigovernment strikes and demonstrations for political reform. Since 1993, corruption and political instability have caused the economy and infrastructure to decay further. Since April 1994, the government commitment to economic reforms has been erratic. Enormous obstacles stand in the way of Madagascar's realizing its considerable growth potential.
GDP:
purchasing power parity - $11.4 billion (1995 est.)
GDP real growth rate:
2.7% (1995 est.)
GDP per capita:
$820 (1995 est.)
GDP composition by sector:
agriculture:
35%
industry:
15%
services:
50% (1995 est.)
Inflation rate (consumer prices):
35% (1994 est.)
Labor force:
total workers:
4.9 million
workers not receiving money wages:
4.7 million (96% of total labor force); note - 4.3 million workers are in subsistence agriculture
wage earners:
175,400 (3.6% of total work force)
wage earners by occupation:
agriculture 45,500, domestic service 29,750, industry 26,250, commerce 24,500, construction 19,250, service 15,750, transportation 10,500, other 3,500 (1985 est.)
Unemployment rate:
NA%
Budget:
revenues:
$250 million
expenditures:
$265 million, including capital expenditures of $180 million (1991 est.)
Industries:
meat processing, soap, breweries, tanneries, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum
Industrial production growth rate:
3.8% (1993 est.)
Electricity:
capacity:
220,000 kW
production:
560 million kWh
consumption per capita:
40 kWh (1993)
Agriculture:
coffee, vanilla, sugarcane, cloves, cocoa, rice, cassava (tapioca), beans, bananas, peanuts; livestock products
Illicit drugs:
illicit producer of cannabis (cultivated and wild varieties) used mostly for domestic consumption; transshipment point for heroin
Exports:
$240 million (f.o.b., 1993 est.)
commodities:
coffee 45%, vanilla 20%, cloves 11%, shellfish, sugar, petroleum products
partners:
France, US, Germany, Japan, Russia
Imports:
$510 million (f.o.b., 1993 est.)
commodities:
intermediate manufactures 30%, capital goods 28%, petroleum 15%, consumer goods 14%, food 13%
partners:
France, Germany, Japan, UK, Italy, Netherlands
External debt:
$4.3 billion (1993 est.)
Economic aid:
recipient:
ODA, $318 million (1993)
Currency:
1 Malagasy franc (FMG) = 100 centimes
Exchange rates:
Malagasy francs (FMG) per US$1 - 4,239.5 (November 1995), 3,067.3 (1994), 1,913.8 (1993), 1,864.0 (1992), 1,835.4 (1991)
Fiscal year:
calendar year
