Rédaction Africa Links 24 with lexpress
Published on 2024-02-26 02:46:00
Akinwumi Adesina, President of the African Development Bank (ADB).
Among the “fairly good students” of the ADB is the Great Island. This institution’s indicators show it.
A balm to the heart. After the rise in poverty mentioned in the recent study by the World Bank and INSTAT, the African Development Bank (ADB) also has its own assessments on key macroeconomic indicators. Overall, in its document focused on Africa’s performance and macroeconomic prospects, published in January, the ADB considers Madagascar to be a “fairly good student” in three out of four indicators, compared to what the country’s averages could be for the years 2024-2025. The four criteria selected were the real GDP growth rate, the inflation rate, the current account balance, and the budget balance.
For each indicator, countries are divided into three groups: good students, fairly good students, and weak students.
For real GDP growth, with an estimated progress of 4.9% for this year, Madagascar is among the fairly good students. The best in the class achieve a leap of over 6%.
For the inflation rate, with the projected 7.4% by the end of the year, Madagascar is also in the category of fairly good students. This performance falls within the range of 5 to 9.9%. Countries that have brought this inflation rate below 5% are at the top of the hierarchy.
For the current account balance, good students show a surplus, fairly good students have a deficit of less than 5%, and weak students have a deficit equal to or greater than 5%. According to this African bank, Madagascar should show a deficit of -3.6%. This would thus make the Great Island a fairly good student following the ADB’s ratings.
For the budget balance, good students have a surplus or a deficit of less than 3%, fairly good students have a deficit of 3 to 5%, and weak students have a deficit greater than 5%. It is on this indicator that the country is considered a poor student with its deficit of -6.4%.
Perhaps too arithmetical, these ADB barometers, which are estimative, should still encourage leaders to do more and better. The expression goes way back. The International Monetary Fund, in the mid-80s, hailed Didier Ratsiraka’s revolutionary regime as its good student. For having made the population swallow the bitter pills of structural adjustment.
Read the original article(French) on lexpress.mg
