Mauritius 'Vulnerable' Despite Economic Growth

According to the International Monetary Fund (IMF), Mauritius performed fairly in 2012, given the uncertain international economic environment, owing to feeble sugar and textile exports and a decline in the construction industry.

However, ITC and financial sectors made robust growths during the same period.

Mauritius Finance minister Xavier-Luc Duval has warned that sustaining the country’s economic growth would be challenging in 2013.

Mr Duval called on the island nation to maintain fiscal growth whilst pointing out that the global economy was confronted with many uncertainties, adversely affecting Mauritius.

Speaking in Port Louis, Mr Duval said global economic uncertainties had effects on the local market.

He added that the country’s economy depended on main export markets in Europe, which represented about 60 per cent.

Mr Duval also highlighted that slow growth was increasingly becoming a concern for the government.

The growth rate this year is predicted to be at 3.2 per cent, depending on the global economy, while inflation, which stands at 3.6 per cent, would to rise to 4.5 pc and 4.7 per cent by the end 2013.

He also pointed out that IMF had revised the growth rate of the world economy from a forecast rate of 3.5 per cent in January, to 3.3 per cent.

The minister lauded textile and tourism sectors as Mauritius' flourishing markets, particularly on the African and Asian continents.