Madagascar faces problems of 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 34% 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. Growth should be in
the 5% range in 2000-01.

purchasing power parity - $11.5 billion (1999 est.)

4.5% (1999 est.)

purchasing power parity - $780 (1999 est.)

agriculture: 34%
industry: 12%
services: 54% (1997 est.)

NA%

lowest 10%: 2.3%
highest 10%: 34.9% (1993)

9.5% (1999 est.)

7 million (1995)

NA%

revenues: $553 million
expenditures: $735 million, including capital expenditures of $NA
(1998 est.)

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

5% (1999 est.)

750 million kWh (1998)

fossil fuel: 33.33%
hydro: 66.67%
nuclear: 0%
other: 0% (1998)

698 million kWh (1998)

0 kWh (1998)

0 kWh (1998)

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

$600 million (f.o.b., 1998 est.)

coffee 45%, vanilla 20%, cloves, shellfish,
sugar, petroleum products (1995 est.)

France 40%, US 9%, Germany 8%, Japan 6%, UK 6%
(1997)

$881 million (c.i.f., 1998 est.)

intermediate manufactures 30%, capital goods
28%, petroleum 15%, consumer goods 14%, food 13% (1995 est.)

France 39%, Hong Kong 5%, Japan 5%, China,
Singapore (1997)

$4.1 billion (1997 est.)

$838 million (1997)

1 Malagasy franc (FMG) = 100 centimes

Malagasy francs (FMG) per US$1 - 6,302.9 (October
1999), 5,877.81 (1999), 5,441.4 (1998), 5,090.9 (1997), 4,061.3
(1996), 4,265.6 (1995)

calendar year