Economy of Madagascar

Economy Of Madagascar

Agriculture, including fishing and forestry, is the mainstay of the Madagascar economy and the country has a great potential for growth in the sector. In 2009, agriculture accounted for 24% of Gross Domestic Product (GDP), while commerce and services accounted for 55%. Agriculture employs more than 70% of the labour force and provides livelihoods to the vast majority of about 20 million inhabitants, contributing more than 70% to export earnings, mostly through the export of seafood (mainly shrimps), vanilla, coffee, cacao, litchi, pepper, cotton, tobacco, groundnut, sisal, clove and ylang-ylang. 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 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.

Madagascar is an island endowed with a tropical climate along the coasts, a moderate climate in the highlands and an arid climate in the south. The diversity of its ecology and climate makes it possible to grow temperate crops such as apples, pears, plums, grape and citrus fruits and tropical products such as mangoes and litchi, as well as a wide variety of other crops including coffee, cloves, sisal, maize, tubers and various spices.