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Economy of Madagascar is mainly dependent on the mining industry and agriculture. Agricultural products, fishing and forestry contribute 34% of GDP and 70% of export business. Madagascar economy has been modernized by the French colonial government as well as the independent government. The currency of Madagascar is MGF.
Some of the people still earn their livelihood by farming or by raising cattle. But they follow the traditional way, which in a way slows down the growth of the economy of Madagascar. The purchasing power parity of Madagascar is $14.56 billion. The growth rate of GDP is 5.5%. The industry contributes 16.7 % of the GDP and service sector contributes 54% of the total GDP. The investment rate can be calculated as 14.7% of GDP.
50% of the population of Madagascar lives below poverty line. The lowest rate of product consumption is 10%:3% and the highest rate is 10%:29%. In Madagascar the inflation rate is 7.5%. 7.3 million labor force is at work. The budget of Madagascar shows that the expenditure of the country is $1.079 billion while the revenues it earns are $783.7 million.
Agricultural products like coffee, sugarcane, vanilla, cloves, rice, cocoa, beans, bananas, peanuts etc contribute to the Economy of Madagascar to a great extent. Economy in Madagascar earns profit from industries like meat processing, soap, breweries, tanneries, sugar, textiles, glassware, cement, paper, petroleum, automobile assembly plant and tourism. The growth rate of the industrial products of the country is 3%.
Most of the mineral resources that Madagascar has are exported. Diamond has got a good export market. The export rate is $858.2 million. But oil and natural gas has no function in this field. Electronic products, metals, food products are imported. The import rate is $1.147 billion. Madagascar economy gets much help from International agencies and European Union.
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