Significant decrease in merchandise exports

According to the Banky Foiben’i Madagasikara (BFM), there has been a « deterioration in the trade deficit situation. » This deterioration is primarily due to a significant decrease in merchandise exports.

Vanilla, a key export product for Madagascar, has seen a 43.2 % decrease. According to the BFM, even though the volume sold increased by 188.5 %, the 80.3 % drop in prices had a substantial impact on revenues.

Nickel, another major product, recorded a 56.5 % decline, with decreases of 35.0 % and 33.1 % in volume and average price, respectively. The free zone was also affected, with a 12.8 % decrease in exports, explained by an 11.2% reduction in volume and a slight 1.8 % drop in average price. Meanwhile, cobalt revenues fell by 28.6 %, impacted by a 20.1 % decrease in average price and a 10.7 % reduction in volume. The 26.1 % drop in clove exports is due to a 2.4 % decline in price.

Despite a 7.2 % decrease in imports, it remains challenging to regain the pre-COVID-19 pace. Almost all product categories have declined: capital goods (-17.9 %), raw materials (-11.4 %), free zone products (-4.5 %), food (-17.9%), and consumer goods (-8.0 %). On the other hand, energy imports have increased by 18.3 %. Madagascar’s official foreign exchange reserves reached 2,629.6 million USD at the end of the first half of 2024, equivalent to 5.7 months of imports of goods and services, compared to 2,346.0 million USD during the same period in 2023.