Madagascar Economic Update, October 2019 : A New Start?

The successful conclusion of the Presidential election in January 2019 represents a historic window of opportunity for Madagascar to break cycles of political instability that abruptly interrupted its development in the past and to leapfrog its eco...

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Main Author:	World Bank
Format:	Economic & Sector Work
Language:	English
Published:	Washington, DC: World Bank 2019
Subjects:	ECONOMIC GROWTH POVERTY TRADE MONETARY POLICY FISCAL TRENDS ECONOMIC OUTLOOK PUBLIC FINANCE RISKS COMPETITION
Online Access:	http://documents.worldbank.org/curated/en/535501571854255186/Madagascar-Economic-Update-A-New-Start http://hdl.handle.net/10986/32636

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recordtype	oai_dc
spelling	okr-10986-326362021-05-25T09:29:06Z Madagascar Economic Update, October 2019 : A New Start? World Bank ECONOMIC GROWTH POVERTY TRADE MONETARY POLICY FISCAL TRENDS ECONOMIC OUTLOOK PUBLIC FINANCE RISKS COMPETITION The successful conclusion of the Presidential election in January 2019 represents a historic window of opportunity for Madagascar to break cycles of political instability that abruptly interrupted its development in the past and to leapfrog its economic and social revitalization. Following a prolonged period of economic stagnation, growth accelerated over the last five years to reach 5.1 percent in 2018, its fastest pace in over a decade. The return to constitutional order in 2014 was instrumental to this economic revival, as it contributed to restore investor confidence, re-open access to key export markets, reinstate flows of concessional financing, and encourage structural reforms. Growth continued apace in 2019, although moderating slightly to an estimated 4.7 percent, amid weakening external demand and a slow execution of public spending following the presidential and parliamentary elections. A post-election rebound in public and private investments is expected to result in growth averaging 5.4 percent in 2020-21. This Economic Update suggests however that the country remains vulnerable to shocks. International risks include the possible intensification of the trade war between main trading partners, or the rise in international oil prices in a context of geopolitical tensions. The risk of natural disasters or of a sharp drop in the price of vanilla also need due consideration. The government must take advantage of the successful political transition to accelerate growth-enhancing reforms and develop the necessary fiscal buffers to support priority investments and be ready to face unexpected circumstances. 2019-11-05T14:37:10Z 2019-11-05T14:37:10Z 2019-10 http://documents.worldbank.org/curated/en/535501571854255186/Madagascar-Economic-Update-A-New-Start http://hdl.handle.net/10986/32636 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling Africa Madagascar
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ECONOMIC GROWTH POVERTY TRADE MONETARY POLICY FISCAL TRENDS ECONOMIC OUTLOOK PUBLIC FINANCE RISKS COMPETITION
spellingShingle	ECONOMIC GROWTH POVERTY TRADE MONETARY POLICY FISCAL TRENDS ECONOMIC OUTLOOK PUBLIC FINANCE RISKS COMPETITION World Bank Madagascar Economic Update, October 2019 : A New Start?
geographic_facet	Africa Madagascar
description	The successful conclusion of the Presidential election in January 2019 represents a historic window of opportunity for Madagascar to break cycles of political instability that abruptly interrupted its development in the past and to leapfrog its economic and social revitalization. Following a prolonged period of economic stagnation, growth accelerated over the last five years to reach 5.1 percent in 2018, its fastest pace in over a decade. The return to constitutional order in 2014 was instrumental to this economic revival, as it contributed to restore investor confidence, re-open access to key export markets, reinstate flows of concessional financing, and encourage structural reforms. Growth continued apace in 2019, although moderating slightly to an estimated 4.7 percent, amid weakening external demand and a slow execution of public spending following the presidential and parliamentary elections. A post-election rebound in public and private investments is expected to result in growth averaging 5.4 percent in 2020-21. This Economic Update suggests however that the country remains vulnerable to shocks. International risks include the possible intensification of the trade war between main trading partners, or the rise in international oil prices in a context of geopolitical tensions. The risk of natural disasters or of a sharp drop in the price of vanilla also need due consideration. The government must take advantage of the successful political transition to accelerate growth-enhancing reforms and develop the necessary fiscal buffers to support priority investments and be ready to face unexpected circumstances.
format	Economic & Sector Work
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Madagascar Economic Update, October 2019 : A New Start?
title_short	Madagascar Economic Update, October 2019 : A New Start?
title_full	Madagascar Economic Update, October 2019 : A New Start?
title_fullStr	Madagascar Economic Update, October 2019 : A New Start?
title_full_unstemmed	Madagascar Economic Update, October 2019 : A New Start?
title_sort	madagascar economic update, october 2019 : a new start?
publisher	Washington, DC: World Bank
publishDate	2019
url	http://documents.worldbank.org/curated/en/535501571854255186/Madagascar-Economic-Update-A-New-Start http://hdl.handle.net/10986/32636
_version_	1764476965280022528

Madagascar Economic Update, October 2019 : A New Start?

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