Madagascar Economy 1997

Economy - overview Madagascar suffers from chronic malnutrition, underfunded health andeducation facilities, a roughly 3% annual population growth rate, and severeloss of forest cover, accompanied by erosion. Agriculture, including fishingand forestry, is the mainstay of the economy, accounting for 33% of GDP andcontributing more than 70% to export earnings. Industry features the processingof agricultural products and textile manufacturing. Growth in output in 1992-95averaged only 1.4%, less than half the growth rate of the population. Growthhas been held back by antigovernment strikes and demonstrations, a declinein world coffee demand, and the erratic commitment of the government to economicreform. Formidable obstacles stand in the way of Madagascar's realizing itsconsiderable growth potential; the extent of government reforms, outside financialaid, and foreign investment will be key determinants.

GDP purchasing power parity - $12.1 billion (1996 est.)

GDP - real growth rate 3.5% (1996 est.)

GDP - per capita purchasing power parity - $880 (1996 est.)

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

Inflation rate - consumer price index 47% (1995 est.)

Labor force
total: 4.9 million
by occupation : agriculture 45,500, domestic service 29,750, industry 26,250, commerce24,500, construction 19,250, service 15,750, transportation 10,500, other3,500 (1985 est.)
note: 175,000 workers (3.6% of the total work force) earn money wages; 4,725,000workers receive no monetary wage (of these, 91% are engaged in subsistenceagriculture)

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, tourism

Industrial production growth rate 3.8% (1993 est.)

Electricity - capacity 208,000 kW (1991)

Electricity - production 450 million kWh (1991)

Electricity - consumption per capita 36 kWh (1992)

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%, consumergoods 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 - 3,950 (November 1996), 3,974.9 (August1996), 4,265.6 (1995), 3,067.3 (1994), 1,913.8 (1993), 1,864.0 (1992)

Fiscal year calendar year

NOTE: The information regarding Madagascar on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Madagascar Economy 1997 information contained here. All suggestions for corrections of any errors about Madagascar Economy 1997 should be addressed to the CIA.