In its economic report, published on Wednesday, December 16, the World Bank estimates that almost 1.9 million more Malagasy people will fall below the poverty line, bringing the poverty rate to almost 78%, the highest in the country. country since 2012.
as reported from Madagascar, Laure Verneau
The economy contracted by 4.2% due to several factors: international trade is disrupted, borders are closed and domestic activity suddenly ceases. Interest in the recession is largely due to a sharp decline in export revenues and private investment.
The World Bank also compares the current recession with Madagascar’s experience in 2009 during the political crisis. For Marie-Chantal Uwanyiligira, president of the financial institution, “in this context, growth should only reach 2% in 2021, before returning more markedly to 5.8% in 2022.”
However, a recovery is expected in 2021, but the outlook is still uncertain. For the President of the World Bank, it is the sectors most affected by the crisis that we need to focus on, such as textiles and tourism. Sectors that differentiate Madagascar from the continent in terms of comparative advantages.
The growth outlook for the whole of Africa is around -4% for 2020 and + 2.9% in 2021, which is close to the current forecasts for the Big Island.
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