Business Mauritius Sees Opportunity to Boost Growth Above 5%

(Bloomberg) -- Accelerating economic growth in Mauritius presents an opportunity for the government to implement reforms over the next two years that could boost output even further, Business Mauritius said.

“In light of the broadly positive economic outlook for Mauritius, it is felt that the next two years should be treated as a rare window of opportunity for accelerated reforms,” the Ebene, Mauritius-based industry-lobby group said in a 2018-19 budget memorandum emailed Sunday. Measures should be taken to raise labor productivity, diversify tourism and trade markets, “with the ambition to bring growth back to a rate exceeding 5 percent,” it said.

Mauritius’s economy is expected to grow 3.9% in 2018, with construction, tourism, and household- and government-consumption expenditure leading the expansion, according to Statistics Mauritius. In 2019, the 492 billion-rupee ($14 billion) economy is set to grow by 4 percent, the International Monetary Fund said.

Growth is “notably underpinned by an encouraging upturn in both public and private investment for 2017 and overall investment growth of 5 percent in 2018, exclusive of aircraft and marine vessels,” Business Mauritius said. “However, the pace of implementation of the public investment program is of concern.”

©2018 Bloomberg L.P.

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