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 40% of GDP, employing about 85% of the labor force, and contributing more than 80% to export earnings. Industry is confined to the processing of agricultural products and textile manufacturing; in 1985 it contributed only 14% to GDP and employed 4% 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: $2.1 billion, per capita $195; real growth rate 1.4% (1987)

Inflation rate (consumer prices): 15.5% (1987)

Unemployment rate: NA%

Budget: revenues $289 million; expenditures $480 million, including capital expenditures of $180 million (1987)

Exports: $310 million (f.o.b., 1987); @m5commodities--coffee 45%, vanilla 15%, cloves 11%, sugar, petroleum products; @m5partners--France, Japan, Italy, FRG, US

Imports: $315 million (f.o.b., 1987); @m5commodities--intermediate manufactures 30%, capital goods 28%, petroleum 15%, consumer goods 14%, food 13%; @m5partners--France, FRG, UK, other EC, US

External debt: $3.3 billion (1988)

Industrial production: growth rate 1.2 % (1986)

Electricity: 119,000 kW capacity; 431 million kWh produced, 40 kWh per capita (1988)

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

Agriculture: cash crops--coffee, vanilla, cloves, sugar, tobacco, sisal, raffia, pepper, cocoa; food crops--rice, cassava, cereals, potatoes, corn, beans, bananas, coconuts, and peanuts; animal husbandry widespread; imports some rice, milk, and cereal

Aid: NA

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

Exchange rates: Malagasy francs (FMG) per US$1--1,557.6 (January 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 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Madagascar Economy 1989 information contained here. All suggestions for corrections of any errors about Madagascar Economy 1989 should be addressed to the CIA.