After experiencing a deceleration in 2017 due to socio-political tensions, economic growth should accelerate to reach a rate of 4.7% in 2018, according to the International Monetary Fund (IMF).
“Overall, economic activity is showing signs of stabilization, despite persistent weaknesses in some sectors,” said a team from the institution who was program supported by the Extended Credit Facility (ECF).
According to the same source, inflation stood at 0.9% (yoy) in September 2018. “The major fiscal consolidation effort continued in the first half of 2018; the overall fiscal balance showed a surplus of 0.7 percent of GDP during this period, “said Ivohasina Razafimahefa, the team leader.
As a reminder, the country knows, since August 2017, a political crisis marked, at times, violent clashes between police and opposition demonstrators who calls for a reform of the constitution.
“Tensions, if they persist, could undermine the confidence of consumers and investors and therefore affect macroeconomic performance,” warned the IMF mission in October 2017.
