Madagascar Economic Update : Navigating Through the Storm
Development prospects in Madagascar continue to be hampered by the country’s low growth potential and exposure to frequent, deep, and persistent crises. Following a recession in 2020 that was about three times deeper than in the rest of Sub-Saharan...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
Washington, DC
2022
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099452505272217360/IDU063da38be0ec1a043a60b77f0e8c615d431fb http://hdl.handle.net/10986/37506 |
| Summary: | Development prospects in Madagascar
continue to be hampered by the country’s low growth
potential and exposure to frequent, deep, and persistent
crises. Following a recession in 2020 that was about three
times deeper than in the rest of Sub-Saharan Africa, an
economic recovery started in Madagascar in 2021 but was
interrupted in 2022 by a sequence of domestic and
international shocks. In addition to these new headwinds,
the growth potential of the economy has been negatively
impacted during the crisis by a retrenchment in private
investment, deteriorating human capital and weakening
governance. In this context, growth projections were
downgraded to 2.6 percent in 2022 and to an average of 4.4
percent in 2023-2024, with the poverty rate now expected to
remain close to 80 percent by 2024. This can only happen if
the government kickstarts far-reaching reforms supporting
private investment and job creation, better access to basic
services and infrastructure, and greater resilience to
shocks. Several policy priorities are highlighted as
particularly urgent in this Economic Update. This report
also highlights the importance of boosting public school
performance following the continued deterioration in
learning outcomes and advocates for a set of reforms
reinforcing teachers’ selection and evaluation, salary and
school grant management, redress mechanism and local
community engagement. |
|---|