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 32% 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: 32% industry: 13% services: 55% (1997 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: 2.3% highest 10%: 34.9% (1993)
Inflation rate (consumer prices): 4.5% (1997)
Labor force: 7 million (1995)