That dollar amount results from a 25.9% increase from $2.56 billion five years earlier during 2019.
Year over year, the overall value of goods exported from Madagascar fell by -8% compared to $3.51 billion in 2022.
Based on the average exchange rate for 2022, the Malagasy ariary depreciated by -22.4% against the US dollar since 2019 and declined by -8.1% from 2022 to 2023. Madagascar’s weaker local currency made its exports paid for in stronger US dollars relatively less expensive for international buyers.
Best Customers for Madagascar’s Exports
The latest available country-specific data shows that 80.7% of products exported from Madagascar was bought by importers in: France (15.1% of the Malagasy total), United States of America (12.9%), Japan (8.5%), South Korea (8.4%), mainland China (8.3%), Netherlands (6.5%), India (4.2%), Türkiye (4.19%), Canada (3.5%), Indonesia (3.2%), Germany (3%) and South Africa (2.8%).
From a continental perspective, 44.2% of Madagascar exports by value was delivered to Asian countries while 32.5% was sold to importers in Europe. Madagascar shipped another 16.9% worth of goods to North America.
Smaller percentages went to Africa (6%), Oceania (0.22%) led by Australia, then Latin America (0.19%) excluding Mexico but including the Caribbean.
Given Madagascar’s population of 29.8 million people, its total $3.23 billion in 2023 exports translates to roughly $110 for every resident in the East African island. That per-capita amount lags the average $120 one year earlier in 2022.
Madagascar’s Top 10 Exports
The following export product groups represent the highest dollar value in Malagasy global shipments during 2023 at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Madagascar.
- Nickel: US$836.2 million (25.9% of total exports)
- Coffee, tea, spices: $548.7 million (17%)
- Knit or crochet clothing, accessories: $256.8 million (8%)
- Ores, slag, ash: $254.4 million (7.9%)
- Clothing, accessories (not knit or crochet): $253 million (7.8%)
- Gems, precious metals: $230.8 million (7.1%)
- Fish: $135.3 million (4.2%)
- Other base metals: $114.2 million (3.5%)
- Salt, sulphur, stone, cement: $74.9 million (2.3%)
- Mineral fuels including oil: $52.2 million (1.6%)
Madagascar’s top 10 exports accounted for 85.3% of the overall value of total Malagasy shipments.
Gems and precious metals represents the fastest grower among Madagascar’s top 10 export categories, up by 143.1% from 2022 to 2023.
In second place for improving export sales was ores, slag and ash which rose by 24.1%, led by titanium ores and concentrates.
Madagascar’s shipments of fish posted the third-fastest gain in value up by 9.6% year over year.
The leading decliner among Madagascar’s top 10 export categories was miscellaneous base metals via a -47.5% setback.
The above-listed export products are at the 2-digit Harmonized Tariff System code level.
Drilling down to the more detailed 4-digit HTS codes, Madagascar’s most valuable exported goods are unwrought nickel (25.6% of the total), the spice vanilla (8.6%), cloves (7.8%), titanium ores and concentrates (5.4%), unwrought gold (3.8%), cobalt (3.5%), crustaceans including lobsters (also 3.5%), unknitted or non-crocheted men’s suits and trousers (3.4%), unstrung precious and semi-precious stones (3.3%), then knitted or crocheted jerseys and pullovers (3.1%).
Products Generating Greatest Trade Surpluses for Madagascar
The following types of Malagasy product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Nickel: US$835.7 million (Down by -3.6% since 2022)
- Coffee, tea, spices: $544.6 million (Down by -33.4%)
- Ores, slag, ash: $254 million (Up by 24.4%)
- Knit or crochet clothing, accessories: $244 million (Down by -6%)
- Clothing, accessories (not knit or crochet): $237.6 million (Down by -14.4%)
- Gems, precious metals: $220.3 million (Up by 133.9%)
- Other base metals: $113 million (Down by -47.7%)
- Fish: $97.5 million (Down by -1.6%)
- Vegetables: $40.3 million (Up by 24.3%)
- Vegetable/fruit/nut preparations: $34.7 million (Up by 10.6%)
Madagascar has highly positive net exports in the international trade of nickel as well as coffee and spices (particularly vanilla). These surplus cashflows indicate Madagascar’s strong competitive advantages under the nickel product category plus the coffee and spices category.
Products Generating Greatest Trade Deficits for Madagascar
Overall Madagascar incurred a -US$1.97 billion trade deficit for 2023, shrinking by -19.8% from the -$1.58 billion in red ink during 2022.
Below are exports from Madagascar that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Madagascar’s goods trail Malagasy importer spending on foreign products.
- Mineral fuels including oil: -US$944.9 million (Down by -14.1% since 2022)
- Machinery including computers: -$384.3 million (Up by 6%)
- Cereals: -$275.4 million (Down by -32.9%)
- Electrical machinery, equipment: -$274.5 million (Up by 9.7%)
- Vehicles: -$230.1 million (Up by 4.6%)
- Animal/vegetable fats, oils, waxes: -$195.1 million (Down by -25.3%)
- Pharmaceuticals: -$173.4 million (Down by -0.7%)
- Plastics, plastic articles: -$141.1 million (Down by -23.2%)
- Articles of iron or steel: -$140.4 million (Up by 14.8%)
- Knit or crochet fabric: -$129.9 million (Down by -21%)
Madagascar has highly negative net exports and therefore deep international trade deficits for mineral fuels-related products, notably refined petroleum oils.
Madagascar’s Export Companies
Not one Malagasy corporation ranks among the Forbes Global 2000.
Wikipedia lists companies based in Madagascar. Selected examples are shown below.
- Air Madagascar (international/domestic airliner)
- Karenjy (automobiles)
- Madacom (telecommunications, internet services)
- Madagascar Oil (oil, gas)
- Madarail (national railways)
In macroeconomic terms, Madagascar’s total exported goods represent 5.7% of its overall Gross Domestic Product for 2023 ($56.8 billion valued in Purchasing Power Parity US dollars). That 5.7% for exports to overall GDP in PPP for 2023 compares to 6.8% for 2022. Those percentages suggest a relatively decreasing reliance on products sold on international markets for Madagascar’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Madagascar’s unemployment rate averaged 1.8% for 2023, down from the average 1.9% jobless rate in 2022 according to Trading Economics statistics.
Domestically, the average inflation rate for consumer prices in 2023 was 10.5% up from an average 8.157% one year earlier.
Madagascar’s capital city is Antananarivo.
See also Top African Export Countries, Madagascar’s Top 10 Imports, Seychelles Top 10 Exports and Madagascar’s Top Trading Partners
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on April 4, 2024
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on April 4, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 4, 2024
Investopedia, Net Exports Definition. Accessed on April 4, 2024
International Trade Centre, Trade Map. Accessed on April 4, 2024
Wikipedia, Gross domestic product. Accessed on April 4, 2024
Wikipedia, List of Companies of Madagascar. Accessed on April 4, 2024
Wikipedia, Madagascar. Accessed on April 4, 2024
Wikipedia, Purchasing power parity. Accessed on April 4, 2024