Madagascar's economic growth remains positive
According to the African Development Bank, Madagascar's economic growth was 3.2% in 2025, compared with 4.3% in 2024, reflecting a moderate slowdown in economic activity. The growth is supported by agriculture (5%), metallurgy (9.6%), banking and insurance services (14.5%).
The country's economy remains heavily dependent on natural resources, which exposes the economy to commodity price volatility, climate shocks, and disruptions in foreign trade.
Macroeconomic stability is under pressure, but remains broadly stable: tight monetary policy has helped keep inflation at 8% in 2025, while the budget deficit has widened due to infrastructure spending.
Government debt remains moderate at 50.9% of GDP, although vulnerability remains due to external borrowing, low domestic revenue mobilization, and a growing current account deficit.
AFRICAN DEVELOPMENT BANK
