nanarivo
telephone: [261] (2) 212-57, 200-89, 207-18
FAX: [261] (2) 234-539

Flag description: two equal horizontal bands of red (top) and green
with a vertical white band of the same width on hoist side

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 the processing of
agricultural products and textile manufacturing. Growth in output in
1992-95 averaged only 1.4%, less than half 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 - $12.1 billion (1996 est.)

GDP - real growth rate: 3.5% (1996 est.)

GDP - per capita: purchasing power parity - $880 (1996 est.)

GDP - composition by sector:
agriculture : 33%
industry: 15%
services: 52% (1996 est.)

Inflation rate - consumer price index: 47% (1995 est.)

Labor force:
total: 4.9 million
by occupation : agriculture 45,500, domestic service 29,750, industry
26,250, commerce 24,500, construction 19,250, service 15,750,
transportation 10,500, other 3,500 (1985 est.)
note: 175,000 workers (3.6% of the total work force) earn money wages;
4,725,000 workers receive no monetary wage (of these, 91% are engaged
in subsistence agriculture)

Unemployment rate: NA%

Budget:
revenues : $250 million
expenditures: $265 million, including capital expenditures of $180
million (1991 est.)

Industries: meat processing, soap, breweries, tanneries, sugar,
textiles, glassware, cement, automobile assembly plant, paper,
petroleum, tourism

Industrial production growth rate: 3.8% (1993 est.)

Electricity - capacity: 208,000 kW (1991)

Electricity - production: 450 million kWh (1991)

Electricity - consumption per capita: 36 kWh (1992)

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