Economy

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 56% 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: 20%

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 Ariary =1,810 United States Dollars

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