Mauritius flag Mauritius: Economic outline

Economic Outline

Economic Indicators

Mauritius has had low but steady growth rates in the recent past (averaging 3.8% during 2015–19) and is among the most dynamic economies in Sub-Saharan Africa. According to the IMF, benefiting from pre-pandemic fiscal and external safeguards, the Mauritian economy has experienced a robust recovery from the pandemic's aftermath. Real GDP surged by 8.9% in 2022, driven by a resurgence in tourism and manufacturing. This momentum continued in 2023 with a sustained growth rate estimated at 6.9%, surpassing pre-pandemic levels. Key factors contributing to this growth include vibrant tourism, ongoing construction in social housing, and the consistent strong performance of the transport and financial services sectors. For 2024, real GDP growth is anticipated to reach 4.9%, propelled by the escalation of significant social housing and public transportation initiatives in construction, alongside the resurgence of tourism to pre-pandemic levels.

Concerning public finances, while an expansionary fiscal stance is anticipated for fiscal year 2023-24, with the primary fiscal deficit expected to broaden to 2.9% of GDP, excluding grants, it remains crucial to implement the authorities' medium-term growth-friendly fiscal consolidation plan. This strategy aims to diminish public debt and reconstruct fiscal buffers, emphasizing the mobilization of additional tax revenue and curbing current spending, all while safeguarding the most vulnerable segments of society. The debt-to-GDP ratio was estimated at 79.7% in 2023, from 83.1% one year earlier, and is expected to follow a downward trend, declining to 78.8% by 2025 (IMF). The average headline inflation dropped from 10.8% in 2022 to 7.0% in 2023. Additionally, the external current account deficit is projected to have notably narrowed in 2023, while foreign exchange reserves reached USD 7.3 billion by the end of the year. The IMF outlook suggests that headline inflation will moderate to 4.9% on average in 2024, primarily influenced by the dynamics of international oil and food prices. Key to supporting private sector investment and fostering economic diversification is the advancement of structural reforms. This involves maintaining compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, enhancing governance practices, addressing skill mismatches in the labor market, and promoting digitalization and climate-resilient infrastructure investment. These efforts are essential for creating an environment conducive to sustainable economic growth and development.

The island of Mauritius has made substantial progress in its campaign for social equality and poverty reduction and represents an exemplary model of development. The island is classified as an upper-middle-income country by the World Bank, with a high Human Development Index, and is seeking to become a high-income country within the next decade. According to the World Bank, GDP per capita (PPP) reached USD 26,979 in 2022, the second-highest in Africa after Seychelles. Data by Statistics Mauritius show that the unemployment rate in the fourth quarter of 2023 was estimated at 6.1%, compared to 6.8% in the corresponding period of the previous year. Out of the total of 36,400 unemployed individuals, 14,400 were males (40%) and 22,000 were females (60%).

 
Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 12.9014.8216.1117.3018.15
GDP (Constant Prices, Annual % Change) 8.75.13.83.43.4
GDP per Capita (USD) 10,22711,75212,77313,72414,395
General Government Balance (in % of GDP) -2.2-3.2-3.7-2.7-2.6
General Government Gross Debt (in % of GDP) 83.179.778.978.879.5
Inflation Rate (%) n/a7.86.57.44.9
Unemployment Rate (% of the Labour Force) 7.77.47.37.37.3
Current Account (billions USD) -1.49-0.92-0.66-0.81-0.96
Current Account (in % of GDP) -11.5-6.2-4.1-4.7-5.3

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Mauritius Rupee (MUR) - Average Annual Exchange Rate For 1 GBP 47.9944.3845.2744.3850.44

Source: World Bank, 2015

 

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Latest Update: April 2024

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