STORY HIGHLIGHTS
- This edition of the Madagascar Economic Update stresses that Madagascar¡¯s economy is recovering, but growth remains both uneven and insufficient to significantly improve living standards.
- The report notes the low and declining productivity and underscores the critical need of creating conditions for more productive firms to enter the market and grow in order to generate more and better jobs.
- Bridging the productivity divide will require well-designed reforms to improve the business environment, as well as measures enhancing the capabilities of firms and promoting entrepreneurship.
The presents recent economic developments and medium-term outlook. The focus section of the report uses data from the 2022 ÐÓ°ÉÂÛ̳ Enterprise Survey (WBES) to analyze recent firm productivity performance, the main drivers of productivity growth, and the implications for policymaking.
Report Highlights
1. The economy is recovering, but growth remains uneven.
After plunging to -7.1% in 2020¡ªthe most severe contraction since the 2002 political crisis¡ªgrowth remained broadly stable at an estimated 4.2% in 2024. Growth has been driven by private inve