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Economy of Madagascar

Madagascar is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Madagascar may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Madagascar exports around $0.64 billion and imports roughly $2.79 billion. 1.8% of population in the country are unemployed. The total number of unemployed people in Madagascar is 472,731. In Madagascar, 70.7% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Madagascar is very high when compared with other nations. This situation is indicative of a variety of alarming economic and political factors. It is not advisable to make any investments in countries with this level of poverty. Government expenditure on education is 3% of GDP. The Gini Index of the country is 47.5. Madagascar is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. Madagascar has a Human Development Index (HDI) of 0.498. Madagascar has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Madagascar is 1.911. Due to strong law enforcement presence and high social responsibility, Madagascar is very safe by international standards. The strength of legal rights index for Madagascar is 3. Overall, it is considered to be rather inadequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders to some degree; credit information may be sufficient, but hardly available, or, the oppoiste case, available but not sufficient.


The currency of Madagascar is Malagasy ariary. The plural form of the word Malagasy ariary is ariaries. The symbol used for this currency is Ar, and it is abbreviated as MGA. The Malagasy ariary is divided into Iraimbilanja; there are 5 in one ariary.

Credit rating

The depth of credit information index for Madagascar is 0, which means that information, if any, is scarce, of insufficient details and almost inaccessible.

Central bank

In Madagascar, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of Madagascar. Locally, the central bank of Madagascar is called Banque Centrale de Madagascar. The average deposit interest rate offered by local banks in Madagascar is 12.4%.

Public debt

Madagascar has a government debt of 89.3% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Madagascar is set at 20%. Personal income tax ranges from 0% to 20%, depending on your specific situation and income level. VAT in Madagascar is 20%.


The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Madagascar is $34052 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Madagascar was last recorded at $1 million. PPP in Madagascar is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Madagascar is 10,612 billion. Based on this statistic, Madagascar is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Madagascar was last recorded at $0 million. The average citizen in Madagascar has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Madagascar averaged 3% in 2014. According to this percentage, Madagascar is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Madagascar.


Major industries in the country are meat processing, seafood, soap, beer, leather, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum, tourism, mining. The total labor force of Madagascar is 13,053,140 people, wherein 1.8% of population in the country are unemployed. The total number of unemployed people in Madagascar is 472,731. The Industrial Production growth rate of Madagascar is 4%.To read more about industrial information within Madagascar click on industry of Madagascar.


There are 29251 km2 of arable land in Madagascar, and it comprises 5% of the country's total territory. There are 35183 km2 of cultivated land in Madagascar. The country's major agricultural crops and products are coffee, vanilla, sugarcane, cloves, cocoa, rice, cassava, beans, bananas, peanuts, livestock products.To read more about agriculture click on agriculture of Madagascar.