Joint Economic Council discussed the economic situation in Mauritius

Representatives of the Joint Economic Council (JEC) met the press in Port Louis on Monday to discuss the economic situation and propose some solutions.

JEC president Louis Rivalland highlighted that confidence is crucial for businessmen. He stated that the situation abroad will not improve soon, strengthening further the scenario of double-dip recession.

According to him, the deterioration in US sovereign debt by the rating agency, Standard and Poor’s and the high indebtedness of European countries has caused panic in the financial markets. “About Rs 5 billion of investment is waiting to be used for development in different sectors and the priority is to give a new boost to the economy,” explained Rivalland.

The JEC president underlined that there is a need to act on the monetary policy by reducing the Repo rate and fiscal policy by reducing taxation. “The priority remains the improvement in internal capacity, identification of new growth potential, restoring confidence through concrete action that increases visibility and reduces uncertainty,” he stated.

JEC director Raj Makoond said that the focus should be on growth. “A harmonisation between economic and political development and a transparent and equitable social policy such as proposing guidelines of CSR is desirable to boosting the Mauritian economy,” he said.