- The Mauritian economy continues to exhibit resilience with growth at 4.7 percent in 2024 and contained inflation. The growth outlook remains favorable, though risks are to the downside.
- Mauritius needs to recalibrate the macroeconomic policy mix to rebuild fiscal space. The monetary policy framework needs to be strengthened while continued monitoring of macro-financial risks is essential to maintain financial stability.
- Advancing key reforms to foster external competitiveness and private sector-led growth while enhancing climate resilience will reduce external imbalances.
Washington, DC: An International Monetary Fund (IMF) mission led by Mariana Colacelli visited Mauritius from March 31 to April 11, 2025, to conduct the 2025 Article IV Consultation.
At the conclusion of the visit, Ms. Colacelli issued the following statement:
"Real GDP grew by a robust 4.7 percent in 2024, driven by services, construction, and tourism. The growth outlook is favorable, supported by the services sector. However, real GDP growth is projected to soften to 3.0 percent in 2025 due to weakening external demand, easing tourism activity, and the severe drought.
"Headline inflation is projected to remain contained in 2025. Inflation eased in 2024 to 3.6 percent from 7.0 percent in 2023. Inflation was 2.5 percent in March, remaining within the Bank of Mauritius' (BOM) target range of 2-5 percent, driven by declining international food and energy prices, and lower fuel excise duties.
"The external current account deficit is estimated to have widened in 2024 while foreign reserves increased to US$ 8.4 billion at end-2024.
"A deterioration in global growth and higher uncertainty in trade and financial markets could dampen growth. Delays in recalibrating the macroeconomic policy mix could lead to a disorderly adjustment. Extreme climate events could damage infrastructure and agriculture, weakening tourism and growth.
"Policy discussions centered on recalibrating the macroeconomic policy mix to rebuild fiscal space, strengthening the monetary policy framework, and maintaining financial stability.
"As in fiscal year 2023/24, the fiscal policy stance in fiscal year 2024/25 is expected to be expansionary—with the primary fiscal deficit projected to widen to 6.6 percent of GDP, excluding grants. Public debt is projected to reach almost 90 percent of GDP at end-June 2025. Implementing an ambitious medium-term growth-friendly fiscal consolidation plan, starting in fiscal year 2025/26, is critical to help rebuild fiscal space and support fiscal sustainability. Boosting tax revenue and reducing current spending while protecting the most vulnerable, and strengthening fiscal governance, are needed.
"Since 2023, the monetary policy stance has become less accommodative, and inflation has decreased to BOM's target range. The BOM should remain ready to further tighten the monetary policy stance should inflationary pressures revive. The implementation of the monetary policy framework should be strengthened, and BOM independence must be safeguarded. Conserving foreign reserves will enhance the resilience of the economy in the face of external shocks. We support the authorities' plans to gradually phase out the BOM's ownership of the Mauritius Investment Corporation.
"Continued monitoring of macro-financial risks, including those associated with global business companies operating in the Mauritius International Financial Center and the real estate sector, will maintain financial stability.
"Advancing structural reforms to foster external competitiveness and private sector-led growth while enhancing climate resilience will reduce external imbalances. Key reforms would improve governance, sustain compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, boost private sector competitiveness, and enhance labor supply and skills.
"The IMF team extends its thanks to the Mauritian authorities and people for the constructive and open dialogue and warm hospitality."
