Overview: Madagascar is one of the poorest countries in the world. During the period 1980-85 it had a population growth of 3% a year and a - 0.4% GDP growth rate. Agriculture, including fishing and forestry, is the mainstay of the economy, accounting for over 40% of GDP, employing about 85% of the labor force, and contributing more than 70% to export earnings. Industry is confined to the processing of agricultural products and textile manufacturing; in 1988 it contributed only 16% to GDP and employed 3% of the labor force. Industrial development has been hampered by government policies that have restricted imports of equipment and spare parts and put strict controls on foreign-owned enterprises. In 1986 the government introduced a five-year development plan that stresses self-sufficiency in food (mainly rice) by 1990, increased production for exports, and reduced energy imports.

GDP: $1.7 billion, per capita $155; real growth rate 2.2% (1988)

Inflation rate (consumer prices): 17.0% (1988)

Unemployment rate: NA%

Budget: revenues $337 million; expenditures $245 million, including capital expenditures of $163 million (1988)

Exports: $284 million (f.o.b., 1988); commodities--coffee 45%, vanilla 15%, cloves 11%, sugar, petroleum products; partners--France, Japan, Italy, FRG, US

Imports: $319 million (f.o.b., 1988); commodities--intermediate manufactures 30%, capital goods 28%, petroleum 15%, consumer goods 14%, food 13%; partners--France, FRG, UK, other EC, US

External debt: $3.6 billion (1989)

Industrial production: growth rate - 3.9 % (1988)

Electricity: 119,000 kW capacity; 430 million kWh produced, 40 kWh per capita (1989)

Industries: agricultural processing (meat canneries, soap factories, brewery, tanneries, sugar refining), light consumer goods industries (textiles, glassware), cement, automobile assembly plant, paper, petroleum

Agriculture: accounts for 40% of GDP; cash crops--coffee, vanilla, sugarcane, cloves, cocoa; food crops--rice, cassava, beans, bananas, peanuts; cattle raising widespread; not self-sufficient in rice and wheat flour

Illicit drugs: illicit producer of cannabis (cultivated and wild varieties) used mostly for domestic consumption

Aid: US commitments, including Ex-Im (FY70-88), $118 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), $2.6 billion; Communist countries (1970-88), $491 million

Currency: Malagasy franc (plural--francs); 1 Malagasy franc (FMG) = 100 centimes

Exchange rates: Malagasy francs (FMG) per US$1--1,531.0 (January 1990), 1603.4 (1989), 1,407.1 (1988), 1,069.2 (1987), 676.3 (1986), 662.5 (1985)

Fiscal year: calendar year

NOTE: The information regarding Madagascar on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Madagascar Economy 1990 information contained here. All suggestions for corrections of any errors about Madagascar Economy 1990 should be addressed to the CIA.