Madagascar must reform to achieve 5% growth
Madagascar will not achieve the 5% growth projected by the IMF this year unless it introduces reforms to boost tax revenue and improve the business climate.
The IMF said Madagascar’s economy showed early signs of recovery. Growth was estimated at 3% in 2014, with the potential to rise to 5% in 2015.
Madagascar’s economy was battered after a 2009 coup that drove away donors and investors. A peaceful 2013 election has brought back some aid, but it is still struggling to impose stable government and economic reforms.
The country is one of the world’s poorest, despite its reserves of nickel, cobalt, gold, uranium and other minerals.
Reforming the judiciary and improving the business climate were critical to boosting growth, the IMF official said.