Worrisome trend, says BFM
In 2024, Malagasy exports continue to fall, with the BFM detailing the origins and economic impacts of this decline.
According to Madagascar’s Central Bank, the country’s exports have faced a significant decline this year. In its latest economic report, the BFM points to a concerning drop in the second quarter of 2024, underscoring persistent challenges in export performance.
The BFM’s economic review highlights that this trend is troubling, as it has worsened the country’s trade balance. The trade deficit reached -4.1 % of GDP in the first half of 2024, up from -2.3 % for the same period in 2023, according to the Central Bank.
Key sectors impacted include cloves and free-zone products, with total exports dropping by 1 % in the third quarter compared to the previous quarter. This decline is partly attributed to falling demand for specific products like cloves, a major export commodity for Madagascar.
The Central Bank also references a « difficult international economic environment » as a primary factor in this downturn. Global market volatility has further exacerbated export challenges for Madagascar. Overall, Malagasy exports totaled 1.219 billion USD in the first half of 2024, compared to 1.689 billion USD in the same period in 2023, marking a substantial decline.
