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Madagascar - Évolution économique récente (Francês)

The economic slowdown continues during the first semester of 2014 and the projected gross domestic product (GDP) growth rate for the year remains weak. Financing from technical and financial partners has not yet come back and private operators’ intention to invest has not yet materialized. Some budget supports are however expected in the second semester. But there remain much to be done by the government to set up or restore conditions conducive to the development of the private sector and to improve its capacity to deliver public services. Capacity to generate resources was too low to allow the commitment of the planned public expenditures. The overall balance of the balance of payments improved but remained in deficit with the deceleration of foreign direct investment and public external financing. As a result, the Ariary depreciated and international reserves continued to fall. Along with the reduction of net foreign assets and the slowing down of net domestic credit, the growth of the broad money remains under control. The most important degradations are observed on indicators related to social inclusion and equity and those related to public sector management and institutions. The progress accomplished to date on the political level offers to the country the opportunity to strengthen its political and institutional frameworks. Indeed, countries with better policies tend to enjoy higher per capita GDP growth.

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