Madagascar : Recent Economic Developments

Author/Editor:

International Monetary Fund

Publication Date:

July 20, 1995

Summary:

This paper describes the economic developments in Madagascar during the 1990s. In early 1994, the authorities prepared a medium-term policy statement with an outward orientation. Accordingly, a sweeping reform of the exchange and trade system was implemented in May 1994, including the floating of the Malagasy franc. However, financial policy was not sufficiently supportive: ad hoc tax exemptions were granted, particularly to foodstuffs and petroleum products, and other taxes were not fully collected. Thus, the fiscal deficit deteriorated, leading to a sharp acceleration in money creation and inflation, which rose to 61 percent by end-1994.

Series:

Country Report No. 95/64

Subject:

Notes:

This report on recent economic developments in Madagascar was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.

English

Publication Date:

July 20, 1995

ISBN/ISSN:

9781451825206/1934-7685

Stock No:

1MDGEA0011995

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

89

Please address any questions about this title to publications@imf.org