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Signs Of Recovery For Madagascar’s Economy

Signs Of Recovery For Madagascar’s Economy

From Reuters

Madagascar’s economy showed early signs of recovery in 2014 with growth estimated at 3 percent, which could rise to 5 percent in 2015, but political instability, weak institutions and weak governance are hurting prospects, the IMF said.

The Indian Ocean island’s economy was battered after a 2009 coup that drove away donors and investors. A peaceful 2013 election has brought back some aid, but the nation is still struggling to impose stable government and economic reforms.

The cabinet resigned last week and a new prime minister, Jean Ravelonarivo, an air force commander and businessman, was sworn in on Saturday. But his appointment faces a legal challenge, which could prolong efforts to pick new ministers.

“In a fragile environment, the uncertainty linked to political instability, weak institutions, and weak governance has been eroding the foundation for solid economic growth,” the International Monetary Fund said in a report on its website.

 

 

Read more at Reuters