IMF to disburse SDR 24.44 million to help the Republic of Madagascar with economic recovery

15 Sep 2022

According to an International Monetary Fund (IMF) September 2022 press release, the IMF will disburse SDR 24.44 million (approximately US$31.9 million) to the Republic of Madagascar. The funds will be used to finance Madagascar’s economic recovery from the COVID-19 pandemic, the negative effects associated with the war in Ukraine, and the damaging results related to natural disasters that have been exacerbated by climate change.

Madagascar’s economic recovery 

“Madagascar’s recovery from the pandemic has been hindered by a severe cyclone season and the spillovers from Russia’s war in Ukraine. While 2021 growth was revised up to 4.3 percent, 2022 growth is projected to stall at 4.2 percent. Annual average inflation is projected to accelerate to 9.8 percent fueled by the surge in international oil and food prices. Lower growth and higher commodity prices will weigh on the budget, widening the fiscal deficit,” said the IMF.

In addition to strengthening the fight against corruption, the role of private sector investment is essential to help the economy recover more quickly:

“Madagascar’s performance under the Fund-supported program has been broadly satisfactory despite delays in structural reforms and a challenging external environment. Continuation of prudent policies and a more proactive stance to support structural performance are needed to maintain macroeconomic stability, boost investment, and help achieve more sustainable and inclusive growth,” said Ms. Antoinette Sayeh, IMF Deputy Managing Director and Acting Chair.

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