Madagascar Economic Outlook
- The rate of growth is forecast to speed up in 2012 and 2013.
- Most public sector reforms have been slowed, or even halted, by the political crisis.
- The nationwide level of unemployment is 3.8% while that of young people is 5.9%. But there is a very high level of underemployment, which stands at 42.2%.
The political crisis persisted in 2011 and continued to have an impact on the social and economic situation of the country. Nevertheless, the rhythm of growth should pick up in 2012 and 2013. This outlook is partly linked to the political prospects that are taking shape in the light of the signature on 17 September 2011 of a roadmap for a way out of the crisis and partly from the robust performance of the mining sub-sector. But the present persisting economic crisis in the Eurozone could adversely affect this dynamism.
The weak performances of the nation’s economy since the political crisis began, have resulted in a sharp deterioration in standards of living. Budgetary constraints and a shortage of human resources have helped weaken even further basic social services and their ability to respond to the needs of the population. Of the Millennium Development Goals (MDGs) only that relating to HIV/AIDS will be reached in Madagascar. The political crisis has acted as a brake on the reform of the public sector where it has not brought it to a halt. The combined political and international financial crises are thought to have cost 336 000 jobs and made about 90% of those remaining vulnerable. The rate of unemployment in Madagascar among those aged under 25 is 5.9%, while at the national level it is 3.8%. But the underemployment rate is very high, at 42.2%. The country does have a national employment policy (NEP) which is implemented through a national employment support programme (NESP). The mismatch between education and training and the skills needed, in particular by the private sector, is a major problem for youth employment.
