Macro-economic profile of Mauritius

Mauritius belongs to the very few countries in the world that have experienced uninterrupted annual economic growth for more than three decades. There was no recession in Mauritius from 1981 to 2019. 

Between the 1980s and 2000, Mauritius experienced robust economic growth which propelled the country to the rank of upper middle-income status. At the same time, Mauritius achieved full employment and wages rose relative to other countries. This led to a shift from a labour intensive to a capital intensive growth model.

Compared to peer countries, over the past 15 years, Mauritius’ growth rate was relatively stable and had the smallest fall in growth during the 2009 global financial crisis, maintaining a positive growth rate over this period. 

As a result of the Covid 19 pandemic and Corona measures, the economy and state finances have suffered considerably. GDP has fallen by 14.7%, for which the massive slump in tourism and the hospitality industry is primarily responsible. Unemployment is 9.2% (without support measures it would be around 20%). Public debt jumped from 65% to 95% of GDP in 2019/20. External debt increased from 15% to 20%.

The budget deficit in fiscal year 2021/22 is expected to be 5%, which is considered positive in the current environment. The economy is expected to recover strongly; GDP growth of 9% is planned.

For 2021, the IMF’s World Economic Outlook expects growth of 6.6%. The African Economic Outlook forecasts average GDP growth of 7.1% for 2021 and 2022.