Madagascar: economy

What is Madagascar's GDP growth rate?

Madagascar's real GDP grew by 4.3% in 2024, a provisional figure, after 4.2% in 2023, according to INSTAT's Tableau de bord de l’économie n°63 of August 2026. The economy shrank by 7.1% in 2020.

No official GDP figure for 2025 was published in that report. The central bank's decision of 4 August 2026 forecasts growth of 3.0% for 2026, by its own calculations, and says a short-term activity indicator rose 0.3% year on year in the second quarter of 2026. The IMF World Economic Outlook estimates 3.1% growth in 2025 and projects 3.8% in 2026.

Official sources: INSTAT: Tableau de bord de l'économie n°63, August 2026 (PDF) · Banky Foiben'i Madagasikara: Monetary policy decision of 4 August 2026 · IMF DataMapper: Real GDP growth, Madagascar

What is the inflation rate in Madagascar?

Consumer prices in Madagascar were 8.7% higher in May 2026 than a year earlier, according to INSTAT's Tableau de bord de l’économie n°63, up from 7.9% in April and 6.8% in March. The central bank's decision of 4 August 2026 puts inflation at 8.6% in June 2026.

The index is INSTAT's national consumer price index. Food prices rose 10.5% over the year to May, while rice, a large part of household spending, was 0.5% cheaper. The central bank reports underlying inflation, which leaves out rice and energy, at 11.4% at the end of June 2026, against its medium-term target of 5.0% for overall inflation.

Official sources: INSTAT: Tableau de bord de l'économie n°63, August 2026 (PDF) · Banky Foiben'i Madagasikara: Monetary policy decision of 4 August 2026 · INSTAT: Consumer price index (NIPC)

What is the central bank interest rate in Madagascar?

Banky Foiben'i Madagasikara's policy rate is 12.50%. The monetary committee raised it from 12.00% on 4 August 2026, with effect from 5 August, according to its press release.

The committee gave the rise as a response to inflation picking up again in the second quarter of 2026, and named higher world commodity prices, shipping insurance costs and the increase in the minimum wage as risks to prices for the rest of the year. Its stated medium-term inflation objective is 5.0%. The release also reports bank credit growth of 8.8% over the year to June 2026.

Official sources: Banky Foiben'i Madagasikara: Monetary policy decision of 4 August 2026 · Banky Foiben'i Madagasikara

Is Madagascar a rich or poor country?

Madagascar's GDP per capita was about USD 599 in 2025 at current prices, up from about USD 550 in 2024, according to the World Bank. The World Bank estimates that 69.2% of people lived on less than USD 3.00 a day in 2021, at 2021 purchasing power.

GDP per capita divides output, converted to dollars at market exchange rates, by a population of about 32.7 million, so it moves with the ariary's exchange rate and with population growth as well as with output. The poverty figure comes from a household survey, and 2021 is the latest year in the series.

Official sources: World Bank: GDP per capita, Madagascar · World Bank: Poverty at $3.00 a day, Madagascar (API)

How is the ariary doing?

The ariary rose by 9.3% against the euro and 7.0% against the US dollar in the first half of 2026, according to the central bank's decision of 4 August 2026. Foreign exchange reserves were USD 3,676.2 million at the end of June 2026, equal to 7.0 months of imports.

The central bank links the ariary's rise to weaker demand for foreign currency and steady inflows. Reserves in months of imports show how long the country could pay for imports from reserves alone. Daily reference exchange rates are published on the central bank's website.

Official sources: Banky Foiben'i Madagasikara: Monetary policy decision of 4 August 2026 · Banky Foiben'i Madagasikara

How fast is Madagascar's economy growing?

3.0%: that is real GDP growth in Madagascar for 2025, according to the World Bank. The peak was 6.7% in 2008 and the low -7.1% in 2020. Across Sub-Saharan Africa the middle value was 4.6%, and Madagascar placed 36th highest of 46. World rank, highest first: 99th of 180.

What is Madagascar's GDP per person?

$599: that is GDP per person in Madagascar for 2025, according to the World Bank. It is the top of the series, which starts in 2005. Across Sub-Saharan Africa the middle value was $1,351, and Madagascar placed 44th highest of 46. Worldwide: 178th of 180.

What is Madagascar's GDP per person adjusted for prices?

The latest figure from the World Bank, for 2025, is $1,952 in international dollars. No year since 2005 has been higher. It is 40th highest of 46 in Sub-Saharan Africa, where the median is $4,425 in international dollars. World rank, highest first: 173rd of 179.

What share of Madagascar's economy is exports?

21.3% of GDP: that is exports of goods and services in Madagascar for 2025, according to the World Bank. The peak was 31.5% of GDP in 2018 and the low 20.1% of GDP in 2020. It is 24th highest of 38 in Sub-Saharan Africa, where the median is 26.1% of GDP. World rank, highest first: 104th of 133.

Does Madagascar earn more abroad than it spends?

The IMF puts the current account balance in Madagascar at -5.2% of GDP in 2025, which is a deficit. The peak was 0.7% of GDP in 2018 and the low -18.2% of GDP in 2009. It is 13th highest of 20 in Sub-Saharan Africa, where the median is -3.6% of GDP. Of 132 countries with 2025 data, 104th highest.

What is FDI in Madagascar?

In 2025, net inflows of foreign direct investment in Madagascar was 4.5% of GDP, according to the IMF. Its high point since 2005 was 2009, at 13.4% of GDP; its low point was 2005, at 1.5% of GDP. Across Sub-Saharan Africa the middle value was 2.0% of GDP, and Madagascar placed 14th highest of 46. Worldwide: 39th of 179.

How high are loan rates in Madagascar?

The IMF puts the average bank lending rate in Madagascar at 60.0% in 2025. It is the top of the series, which starts in 2005. Sub-Saharan Africa median: 17.6%; Madagascar is 1st highest of 16. World rank, highest first: 1st of 73.