Madagascar profile

Demography and Health

Madagascar inventories a population of about 31.96 million in 2024, placing it around 49th in the world by size. The country has a high birth rate of 32.1 births per 1,000 people (2023), signaling a youthful demographic that can drive demand for education, jobs, and health services for decades. Life expectancy at birth is 63.6 years (2023), with a crude death rate of 7.53 per 1,000 people. A stark health challenge is the under-5 mortality rate of 64.8 per 1,000 live births, underscoring ongoing vulnerabilities in child health, nutrition, and access to quality clinical care. Undernourishment affects 39.7% of the population (2022), marking Madagascar as a country with persistent food insecurity that undermines growth, cognitive development, and productivity. Net migration remains negative in 2024 (-1,795), indicating more people leaving than entering and potentially constraining the country’s human capital accumulation and labor force dynamics. Health financing is constrained: current health expenditure stands at 3.25% of GDP in 2022, while domestic government health expenditure per capita (PPP, current international US$) is 16.2 in 2022, reflecting limited fiscal space for comprehensive public health provision. Taken together, these indicators reveal a demographic dividend that could materialize with stronger investments in nutrition, maternal and child health, disease prevention, and primary care, supported by more predictable funding and improved access to essential services.

Economy

Madagascar’s economy is low-income, with GDP per capita of US$545 in 2024 (current prices) and US$1,884 in GDP per capita (PPP, 2024). The economy shows moderate openness but a substantial import reliance: exports of goods and services account for 23.6% of GDP in 2024, while imports represent 31.3% of GDP (2024). Inflation was 9.87% in 2023, signaling notable price pressures that erode purchasing power and complicate macro policy. Unemployment stood at 3.19% in 2022, which may mask underemployment and a large informal sector rather than robust formal employment growth. Madagascar records limited high-technology activity, with high-technology exports amounting to about US$3.98 million (2023) and residents filing 6 patent applications (2021), indicating a nascent innovation landscape. Foreign direct investment net inflows are 2.61% of GDP (2023), suggesting modest external financing and technology transfer opportunities. The current account balance is negative, at −5.41% of GDP (2022), highlighting external financing needs and vulnerability to terms-of-trade shocks. On the energy side, renewable energy constitutes 83.1% of total final energy consumption (2022), signaling a strong renewable base that could underpin future industrial growth if complemented by reliable generation, grid expansion, and market reforms. Overall, Madagascar’s economy sits between low-income constraints and potential growth avenues, with nutrition, governance, and infrastructure as key levers for rising living standards.

Trade and Investment

Madagascar’s external sector demonstrates a modest degree of openness. Exports of goods and services sum to 23.6% of GDP in 2024, while imports are 31.3% of GDP in the same year, implying a net import orientation and exposure to global price movements. Foreign direct investment net inflows amount to 2.61% of GDP in 2023, signaling a cautious level of external capital inflows that could support job creation, technology transfer, and productivity gains if the investment climate improves. The current account deficit of 5.41% of GDP in 2022 reinforces dependence on external financing and underscores vulnerabilities to external shocks. The Logistics Performance Index for quality of trade and transport-related infrastructure sits at 1.8 out of 5 (2022), with a global rank of 28, indicating substantial bottlenecks in ports, roads, and customs that raise trade costs and hamper efficiency. In this context, Madagascar’s energy profile—renewable energy at 83.1% of final energy consumption (2022)—offers a potential competitive edge for energy-intensive activities if reliability and grids can be expanded. Taken together, trade and investment dynamics point to meaningful opportunities for export diversification and higher-value investment, contingent on improving logistics, governance, and market credibility to attract and sustain capital inflows.

Governance and Institutions

Madagascar faces evident governance challenges across several dimensions. Political stability and absence of violence/terrorism register at −0.691 (2023), Regulatory Quality at −0.8, Rule of Law at −0.975, Control of Corruption at −1.0, and Government Effectiveness at −1.02, reflecting a framework of weak institutions and governance performance. These negative indicators, consistent with a sparse patent ecosystem (6 resident patent apps in 2021) and relatively subdued FDI, suggest perceived and real risks around policy credibility, contract enforcement, and public sector efficiency. Such governance constraints can raise the cost of doing business, deter longer-term private investment, and hinder the effective delivery of health, education, and infrastructure programs. The negative governance environment may also contribute to outward migration pressures and limit the scale of public reform efforts necessary to sustain inclusive growth and improve human development outcomes over time.

Infrastructure and Technology

Infrastructure and technology indicators for Madagascar reveal meaningful gaps. The Logistics Performance Index quality of trade and transport-related infrastructure is 1.8 (2022), indicating considerable inefficiencies in the road, port, and customs systems that raise costs and delay shipments. Internet adoption remains limited, with 20.4% of the population accessing the Internet in 2023, signaling a digital divide that constrains e-commerce, digital skills development, and access to online services. Patents by residents are very limited (6 in 2021), underscoring a modest domestic innovation ecosystem. Nevertheless, Madagascar records notable energy resilience through renewable energy consumption, comprising 83.1% of total final energy consumption (2022). This high reliance on renewables could lower energy costs and emissions if supported by investment in generation capacity, transmission, and market reforms to attract investment in the power sector. The relatively high share of imports (31.3% of GDP) paired with weak logistics suggests that improved connectivity and digital infrastructure would be critical to unlocking more sophisticated manufacturing and export opportunities, tapping into the country’s renewable energy advantage while expanding overall productivity.

Environment and Sustainability

Environmentally, Madagascar exhibits both opportunities and vulnerabilities. A standout feature is the high share of renewable energy, at 83.1% of total final energy consumption in 2022, which positions the country favorably for a low-emission growth trajectory provided that reliability and access remain robust. The per capita greenhouse gas emissions excluding LULUCF are 1.06 t CO2e (2023), indicating relatively low emissions on a per-person basis, though aggregate emissions reflect the country’s population size and energy mix. Climate-related vulnerabilities intertwine with development challenges: the prevalence of undernourishment at 39.7% (2022) highlights food security risks that are sensitive to climate variability and agricultural productivity. Water stress appears moderate, with freshwater withdrawals representing 11.3% of available resources (2021), leaving some margin for domestic and agricultural needs but still requiring prudent water management as demand grows. In sum, Madagascar’s environmental profile combines strong renewable energy potential with significant development constraints, suggesting a pathway toward sustainable growth that hinges on expanding energy reliability, protecting ecosystems, and investing in climate-resilient agriculture and nutrition programs to alleviate hunger and improve health outcomes.