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 the onset of a political crisis, which lasted from 2009 to 2013. The 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 in 2000; however, Madagascar's failure to comply with the requirements of the African Growth and Opportunity Act (AGOA) led to the termination of the country's duty-free access in January 2010, a sharp fall in textile production, and a loss of more than 100,000 jobs.Madagascar regained AGOA access in January 2015 following the democratic election of a new president the previous year. Madagascar produces around 80% of the world’s vanilla supply; although supply was constrained by hurricane-related damage in 2017, international demand drove prices to record highs, increasing export earnings for Malagasy vanilla. Madagascar’s financial sector remains weak, limiting the use of monetary policy to control inflation, but an ongoing IMF program aims to strengthen financial and investment management capacity.

GDP (purchasing power parity):
$39.81 billion (2017 est.) $38.15 billion (2016 est.) $36.62 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 119

GDP (official exchange rate):
$10.56 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.3% (2017 est.) 4.2% (2016 est.) 3.1% (2015 est.)
country comparison to the world: 58
[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: 218

Gross national saving:
14.5% of GDP (2017 est.) 16% of GDP (2016 est.) 11.2% of GDP (2015 est.)
country comparison to the world: 129
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 75.4%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 12%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 16.6%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 32.1%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -36.1% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 23.7%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 16%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 60.3% (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:
4.8% (2017 est.)
country comparison to the world: 50
[see also: Industrial production growth rate country ranks ]

Labor force:
13.4 million (2017 est.)
country comparison to the world: 43
[see also: Labor force country ranks ]

Unemployment rate:
2.1% (2016 est.)
country comparison to the world: 15
[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.)

Distribution of family income - Gini index:
41 (2012) 46.9 (2001)
country comparison to the world: 55
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $1.292 billion
[see also: Budget - revenues country ranks ]
expenditures: $1.725 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
12.2% of GDP (2017 est.)
country comparison to the world: 204
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-4.1% of GDP (2017 est.)
country comparison to the world: 144
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
42.3% of GDP (2016 est.) 35.5% of GDP (2015 est.)
country comparison to the world: 129
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
7.8% (2017 est.) 6.7% (2016 est.)
country comparison to the world: 196
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
8.3% (31 December 2016) 8.7% (31 December 2015)
country comparison to the world: 38
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
64% (31 December 2017 est.) 62% (31 December 2016 est.)
country comparison to the world: 1
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$1.006 billion (31 December 2017 est.) $849.1 million (31 December 2016 est.)
country comparison to the world: 156
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$2.015 billion (31 December 2017 est.) $1.793 billion (31 December 2016 est.)
country comparison to the world: 156
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$1.957 billion (31 December 2017 est.) $1.746 billion (31 December 2016 est.)
country comparison to the world: 151
[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:
-$494 million (2017 est.) $75 million (2016 est.)
country comparison to the world: 104
[see also: Current account balance country ranks ]

Exports:
$2.35 billion (2017 est.) $2.196 billion (2016 est.)
country comparison to the world: 135
[see also: Exports country ranks ]

Exports - commodities:
coffee, vanilla, shellfish, sugar, cotton cloth, clothing, chromite, petroleum products

Exports - partners:
France 23.5%, US 12.8%, Germany 8.3%, China 6.3%, Japan 5%, Netherlands 4.3%, South Korea 4.2% (2016)

Imports:
$3.235 billion (2017 est.) $2.857 billion (2016 est.)
country comparison to the world: 141
[see also: Imports country ranks ]

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

Imports - partners:
China 21.2%, France 6.9%, India 6.5%, UAE 5.6%, Saudi Arabia 5%, South Africa 5% (2016)

Reserves of foreign exchange and gold:
$1.141 billion (31 December 2017 est.) $1.184 billion (31 December 2016 est.)
country comparison to the world: 122
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$3.914 billion (31 December 2017 est.) $3.425 billion (31 December 2016 est.)
country comparison to the world: 140
[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: 100
[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 - 3,262.7 (2017 est.) 3,176.5 (2016 est.) 3,176.5 (2015 est.) 2,933.5 (2014 est.) 2,414.8 (2013 est.)