2010 : a positive economic score sheet anyway

No recovery for the Malagasy economy in 2010 but a slight improvement. The mining and energy sector, and telecommunications have largely contributed to the unexpected  plus 0.5% growth rate. It is at least better than that of the putsch´s year. THe year 2007´s growth rate was 3.7% below 0. The finance ministry conceded that: “the crisis´effects are still being felt in investments and production due to the lack of financial support”.

Appreciation is now become a perspective issue. Forestry equally contributed to 1.1% to growth in this year, although this sub sector officially had its growth dramatically dropping from30.4% to 0.1% in 2010. This is however held by the HAT as a positive factor, namely thanks to an alleged mastering of illegal rosewood traffic. The reduction of agriculture linked returns is blamed on the halt on subsidies.

The industrial sector´s growth rose of 2.1%, as it dropped of 2.4% in 2009. Extractive industry produced a miraculous plus 121.3% in spite of QMM and Sherrit´s postponment of nickel, cobalt and ilmenite exports

The textile industry production is, on the other hand, in free fall, since Madagascar is out of the AGOA deal related market. Some 15000 jobs have been sacrificed, and ten factories shut their doors. Building trade would have claimed a better sheet, without this slowdown rated at  minus 17.5%. The tertiary activity sector equally dropped to minus 0.1%

“The national currency´s stability was maintainedagainst the world´s main currencies thanks to the Central Bank´s prudent financial policy and a slight international variation of crude oil prices, although a relatively short fluctuation was observed in the year 2010´s first semester”. This finance ministry´s speech is however contradicting the facts: THe Ariary is losing ground against the Euro with 2800 Points. Inflation was contained to 9.8% by the end of the year against the basic finance law´s expectation of 13.5%

A local economical improvement may be noticed, regarding the increase of economic credits, from 1923 billions to 2003 billions of Ariary between January and June 2010. Concerning international trade, the tade balance equally noticed increases: 920 millions of DTS this year. The local service balance improved to 69.2 millions of DTS. The checking account´s deficit was reduced to 896 millions of DTS, a 160 millions high reduction compared to 2009. The balance of payment is however lacking some 96.1 millions of DTS