Knowledge Note

Madagascar’s social, economic and governance indicators showed important improvements in recent years with an average growth rate of 5 percent between 2002 and 2008. Despite those improvements, the macroeconomic situation remains fragile and Madagascar’s geographical location makes it vulnerable to tropical cyclones and destructive rains and floods. Poverty remains high, with 68 percent of the population subsisting on less than US $1.25 per day, and 80 percent of the population working as subsistence farmers.