Modern Diplomacy
Published 4 months ago
The latest World Bank economic update for Madagascar estimates that the economy contracted by 4.2 percent in 2020 due to COVID-19 disruptions to global trade and domestic activity. The depth of the recession is therefore comparable to that of the 2009 constitutional crisis and was primarily driven by a sharp drop in export revenues and private investments.
According to the
Madagascar Economic Update, Setting a Course for Recovery, a sudden stop in activity led to significant increase in extreme poverty, with vulnerable populations in urban areas being particularly affected. Nearly 1.4 million people are expected to have fallen below the poverty line (at $1.9/day) in 2020, bringing the poverty rate to 77.4 percent, its highest level since 2012. In the first semester of 2020, 64.4 percent of households reported a loss of revenue and 97 percent of companies a decline in the demand for their products and services.
Madagascar Needs Bold Reforms to Reopen Country, and Rebuild Stronger After COVID-19 Crisis
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Madagascar Needs Bold Reforms to Reopen the Country, and Rebuild Stronger After COVID-19 Crisis
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Impact of COVID-19 pandemic undoing nearly a decade of economic gains and poverty reduction
ANTANANARIVO, December 16, 2020 – The latest World Bank economic update for Madagascar estimates that the economy contracted by 4.2 percent in 2020 due to COVID-19 disruptions to global trade and domestic activity. The depth of the recession is therefore comparable to that of the 2009 constitutional crisis and was primarily driven by a sharp drop in export revenues and private investments.
According to the
Madagascar Economic Update, Setting a Course for Recovery, a sudden stop in activity led to significant increase in extreme poverty, with vulnerable populations in urban areas being particularly affected. Nearly 1.4 million people are expected to have fallen below the poverty line (at $1.9/day) in 2020, bringing the poverty rate to 77.4 percent, its highest level since 2012. In the f