Madagascar saw its poverty rate slide from 72.1 percent in 2004 to 68.7 percent in 2005, according the country's National Institute of Statistics (INSTAT).
The poverty rate dropped 1.7 points in urban areas and 3.8 points in rural areas, said INSTAT in its latest survey.
Despite the overall improvement, poverty remains a social headache plaguing 73.5 percent residents in rural areas and 53 percent urban dwellers, the INSTAT said.
The level of poverty varies in different parts of the country, with southeast regions witnessing the highest poverty rate of 83.9 percent.
Social inequality in Madagascar is also obvious, as "the poorest 20 percent of the population accounts for only 7.3 percent of total consumption, while the richest 20 percent consumes 44.4 percent," INSTAT said.