Positive economic outlook for the second half

According to the World Bank, Madagascar is expected to have an economic growth of 4.5 % for the current year. In its semi-annual report on Sub-Saharan Africa, the World Bank maintains its growth forecast for the Great Island, published on Monday.

In the updated information on Madagascar released at the beginning of October, the World Bank suggested that agriculture, mining, manufacturing, textiles, and telecommunications would be the main drivers of the country’s economic growth. The improvement in agricultural production after the pandemic is also expected to contribute to overall growth.

According to the World Bank, this forecast aligns with the Malagasy authorities’ target, who also anticipate an economic growth of 4.5 % for 2024. For the second half of the current fiscal year, the Ministry of Economy and Finance (MEF) is counting on an increase in private investments. According to the ministry, companies have already planned to resume their activities starting from the second quarter of the year.

The Ministry of Economy and Finance also notes that an increase in the volume of raw material and equipment imports during the first six months of this year, compared to last year, offers a positive outlook for the second half of 2024. However, the ministry warns that the announced decrease in public investments could potentially slow down this expansion.