Mauritius' economy has been rebounding from the challenges brought about by the COVID-19 pandemic. The real Gross Domestic Product (GDP) experienced a notable growth of 8.8% in 2022, primarily propelled by sectors like tourism, manufacturing, financial services, IT services, and wholesale and retail trade.
It's crucial to note, however, that this growth is relative to a considerably low base, given that GDP had declined by 14.6% in 2020. Despite the positive signs of recovery, the Mauritian economy hinges on various factors, including government policies, global economic fluctuations, and other economic variables. Moreover, concerns linger about a potential slowdown in the global economy and the prospect of a recession in key markets in Europe and America, which could impact the country's economic stability.
There's growing skepticism about relying solely on the tourism sector as an indicator of national recovery. It is recognized that economic resurgence relies not only on tourism but also on the performance of other economic sectors and the establishment of new development hubs. The successes of other tourist destinations like the Seychelles and the Maldives emphasize the need for continued efforts to fortify the Mauritian economy. Persistent challenges include high inflation and the depreciation of the Mauritian rupee. Addressing these issues requires a robust anti-inflation policy and a re-evaluation of foreign currency management to stabilize the rupee.
Inflation in Mauritius
In September 2023, inflation in Mauritius experienced a deceleration, settling at 5.2% and reaching 3.4% in April 2024. This slowdown was primarily attributed to a reduced rate of price increase in various categories, with notable moderation observed in the prices of food and non-alcoholic beverages. Consequently, the cost of living for consumers rose at a more measured pace during this month.
Mauritius in terms of economic freedom
In the 2023 Economic Freedom Index published by the Heritage Foundation, Mauritius secured the top spot in the sub-Saharan African region among 47 countries, with a score of 70.6, placing it 30th worldwide. This highlights Mauritius as one of the freest and most business-friendly countries in Africa. Furthermore, Mauritius maintained its position as the leading country in sub-Saharan Africa for the second consecutive year in the Global Innovation Index 2023 report, securing the 52nd position out of 132 countries globally. These rankings underscore Mauritius' unwavering dedication to economic freedom, business-friendliness, and innovation on both regional and global scales.
Existing and promising sectors in Mauritius
Key sectors propelling the growth of the Mauritian economy include textiles, tourism, financial and business services, information and communication technologies, seafood processing, real estate development, energy, and education and training.
Additionally, Mauritius boasts an extensive Exclusive Economic Zone (EEZ) covering 2.3 million square kilometers, a substantial portion of which remains uncontested.
Emerging sectors in development
The Mauritian government is actively fostering the growth of the ocean economy by promoting investments in emerging sectors like aquaculture, marine services, marine biotechnology, and oil and gas exploration. Simultaneously, efforts are underway to modernize traditional sectors, including coastal tourism, fishing, seafood processing, and port activities. Strategic initiatives are being developed to invigorate industries such as pharmaceuticals, biotechnology, renewable energies, and information and communication technologies. The overarching goal is to drive economic diversification and innovation while ensuring sustainability across various economic fronts.
Find data on the main sectors of activity on the EDB website.
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