Madagascar: Recent Economic Developments

July 20, 1995

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Madagascar: Recent Economic Developments, (USA: International Monetary Fund, 1995) accessed November 23, 2024

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.

Subject: Arrears, Banking, Commercial banks, Exports, External debt, Financial institutions, Foreign exchange, International trade

Keywords: Arrears, Balance of payments, Basic rate, Broad money, Commercial banks, CR, Equity capital, Exchange rate, Exports, Free trade zone, GDP ratio, ISCR, Payments arrears, SDR terms, Stabilization fund, Sub-Saharan Africa, Trade balance

Publication Details

Pages:

89
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 1995/064
Stock No:

1MDGEA0011995
ISBN:

9781451825206
ISSN:

1934-7685

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.

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