The World Bank has forecasted a gloomy and a lower economic growth rate for the island southern African country of Madagascar for 2022.

The World Bank’s prediction is, however, at variance with the Malagasy authorities forecast of a positive growth rate of 5.4% this year.

In the framework of the initial 2022 Finance Law released by the World Bank on Friday, the global bank estimates that the Indian Ocean nation’s economic growth for the year is not expected to go beyond 2.6% this year as against 4.4% it recorded last year.

Part of the World Bank report said that Madagascar’s economy “faces new threats from new episodes of COVID-19, a series of extreme weather events and the fallout from the conflict in Ukraine in early 2022.”

“But it is the war in Ukraine that will have the greatest impact on Madagascar’s economic development, due to the slowdown in demand from trading partners and the rise in oil prices, which is expected to lead to a deterioration in the trade balance and increasing pressure on public finances,” the report continued.

Also commenting on the outcome of the report, Idah Pswarayi-Riddihough, the World Bank’s Director of Operations for Comoros, Madagascar, Mauritius and Mozambique, noted:

“In the face of new shocks and uncertainties, Madagascar needs more than ever to undertake bold reforms to accelerate growth and build resilience.

“This is a necessity to reduce poverty in the years to come and avoid a growing backwardness compared to peer countries.”

As a fallout of the gloomy forecast, the World Bank which is a key financial partner of the country, has established a number of priorities that are highlighted as particularly urgent, including a clear strategy to accelerate the immunization of people living in vulnerable situations, in urban and tourist areas.

Parts of the strategies, according to Pswarayi-Riddihough also include the restoration of essential public services and connectivity infrastructure following the recent climatic shocks, strong measures to reduce food insecurity and stimulate national agricultural production, reforms in fuel and electricity pricing, a new impetus to stimulate access to broadband and digital services and more transparency and accountability in the public sector.

This World Bank report also highlights the importance of improving the performance of public schools following the continued deterioration of learning outcomes in recent years.

“Based on new analytical findings, the World Bank suggests a new approach to improving performance that includes measures to strengthen teacher selection and evaluation, salary and school grant management, appeal mechanisms, and local community participation,” Pswarayi-Riddihough added.