Economy - overview:
Madagascar is a mostly unregulated economy with many untapped natural resources, but no capital markets, a weak judicial system, poorly enforced contracts, and rampant government corruption. The country faces challenges to improve education, healthcare, and the environment to boost long-term economic growth. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing roughly 80% of the population. Deforestation and erosion, aggravated by bushfires, slash-and-burn clearing techniques, and the use of firewood as the primary source of fuel, are serious concerns to the agriculture dependent economy.

After discarding socialist economic policies in the mid-1990s, Madagascar followed a World Bank- and IMF-led policy of privatization and liberalization until a 2009 coup d’état led many nations, including the United States, to suspend non-humanitarian aid until a democratically-elected president was inaugurated in 2014. The pre-coup strategy had placed the country on a slow and steady growth path from an extremely low starting point. Exports of apparel boomed after gaining duty-free access to the US market in 2000 under the African Growth and Opportunity Act (AGOA); however, Madagascar's failure to comply with the requirements of the AGOA led to the termination of the country's duty-free access in January 2010, a sharp fall in textile production, a loss of more than 100,000 jobs, and a GDP drop of nearly 11%.

Madagascar regained AGOA access in January 2015 and ensuing growth has been slow and fragile. Madagascar produces around 80% of the world’s vanilla and its reliance on this commodity for most of its foreign exchange is a significant source of vulnerability. Economic reforms have been modest and the country’s financial sector remains weak, limiting the use of monetary policy to control inflation. An ongoing IMF program aims to strengthen financial and investment management capacity.

GDP (purchasing power parity):
$39.85 billion (2017 est.)
$38.25 billion (2016 est.)
$36.72 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 120
[see also: GDP country ranks ]

GDP (official exchange rate):
$11.5 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.2% (2017 est.)
4.2% (2016 est.)
3.1% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 72
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$1,600 (2017 est.)
$1,500 (2016 est.)
$1,500 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 218
[see also: GDP - per capita country ranks ]

Gross national saving:
14.8% of GDP (2017 est.)
15.4% of GDP (2016 est.)
11.2% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 138
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 67.1% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 11.2% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 15.1% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 8.8% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 31.5% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -33.7% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 24% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 19.5% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 56.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
meat processing, seafood, soap, beer, leather, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum, tourism, mining

Industrial production growth rate:
5.2% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 54
[see also: Industrial production growth rate country ranks ]

Labor force:
13.4 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 43
[see also: Labor force country ranks ]

Unemployment rate:
1.8% (2017 est.)
1.8% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 17
[see also: Unemployment rate country ranks ]

Population below poverty line:
70.7% (2012 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.2%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 34.7% (2010 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
41 (2012)
42.7 (2010)
country comparison to the world (CIA rank, may be based on non-current data): 59
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 1.828 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 2.136 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
15.9% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 185
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-2.7% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 123
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
36% of GDP (2017 est.)
38.4% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 148
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
8.3% (2017 est.)
6.7% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 199
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
9.5% (31 December 2017)
8.3% (31 December 2016)
country comparison to the world (CIA rank, may be based on non-current data): 28
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
60% (31 December 2017 est.)
60% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 1
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$1.045 billion (31 December 2017 est.)
$849.1 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 156
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$1.045 billion (31 December 2017 est.)
$849.1 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 161
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$2.345 billion (31 December 2017 est.)
$1.746 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 145
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$35 million (2017 est.)
$57 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 77
[see also: Current account balance country ranks ]

Exports:
$2.29 billion (2017 est.)
$2.26 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 136
[see also: Exports country ranks ]

Exports - partners:
France 24.8%, US 16.5%, China 6.7%, Germany 6.5%, Japan 6%, Netherlands 4.7% (2017)

Exports - commodities:
coffee, vanilla, shellfish, sugar, cotton cloth, clothing, chromite, petroleum products, gems, ilmenite, cobalt, nickel

Imports:
$2.738 billion (2017 est.)
$2.427 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 152
[see also: Imports country ranks ]

Imports - commodities:
capital goods, petroleum, consumer goods, food

Imports - partners:
China 18.7%, India 9.3%, France 6.4%, South Africa 5.6%, UAE 5.3% (2017)

Reserves of foreign exchange and gold:
$1.6 billion (31 December 2017 est.)
$1.076 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 124
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$4.089 billion (31 December 2017 est.)
$3.425 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 139
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.461 billion (2014 est.)
$6.462 billion (2013 est.)
country comparison to the world (CIA rank, may be based on non-current data): 102
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
NA
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Malagasy ariary (MGA) per US dollar -
3,116.1 (2017 est.)
3,176.5 (2016 est.)
3,176.5 (2015 est.)
2,933.5 (2014 est.)
2,414.8 (2013 est.)