Madagascar/Economy

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 34% 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. Growth should be in the 5% range in 2000-01.

GDP: purchasing power parity - $11.5 billion (1999 est.)

GDP - real growth rate: 4.5% (1999 est.)

GDP - per capita: purchasing power parity - $780 (1999 est.)

GDP - composition by sector:
agriculture: 34%
industry: 12%
services: 54% (1997 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2.3%
highest 10%: 34.9% (1993)

Inflation rate (consumer prices): 9.5% (1999 est.)

Labor force: 7 million (1995)

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: 5% (1999 est.)

Electricity - production: 750 million kWh (1998)

Electricity - production by source:
fossil fuel: 33.33%
hydro: 66.67%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 698 million kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

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

Exports: $600 million (f.o.b., 1998 est.)

Exports - commodities: coffee 45%, vanilla 20%, cloves, shellfish, sugar, petroleum products (1995 est.)

Exports - partners: France 40%, US 9%, Germany 8%, Japan 6%, UK 6% (1997)

Imports: $881 million (c.i.f., 1998 est.)

Imports - commodities: intermediate manufactures 30%, capital goods 28%, petroleum 15%, consumer goods 14%, food 13% (1995 est.)

Imports - partners: France 39%, Hong Kong 5%, Japan 5%, China, Singapore (1997)

Debt - external: $4.1 billion (1997 est.)

Economic aid - recipient: $838 million (1997)

Currency: 1 Malagasy franc (FMG) = 100 centimes

Exchange rates: Malagasy francs (FMG) per US$1 - 6,302.9 (October 1999), 5,877.81 (1999), 5,441.4 (1998), 5,090.9 (1997), 4,061.3 (1996), 4,265.6 (1995)

Fiscal year: calendar year