The International Monetary Fund (IMF) has approved the immediate disbursement of $31.9 million to Madagascar to cover the island nation’s external and fiscal financing needs.
The approval comes after the lender confirmed it had completed the second review of the country’s economic program under the Extended Credit Facility
This now brings the total disbursements under the arrangement to $159.7 million.
While Madagascar’s 2021 growth was revised up to 4.3%, 2022 growth is projected to stall at 4.2% and annual average inflation is projected to accelerate to 9.8%, fueled by the surge in international oil and food prices.
The IMF said lower growth and higher commodity prices will weigh on the budget, widening the fiscal deficit.
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