@Madagascar: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 33% 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: 15% 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.)