Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks

IMF Working Papers, June 1, 2010

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Canonical URL: Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks

After reviewing the economic reform strategy of Mauritius for the past 10 years in the face of several external shocks, the authors apply a balance sheet analysis (BSA) focusing on currency, maturity, and intersectoral mismatches.
The analysis finds that currency and maturity mismatches have fallen across various sectors, and intersectoral risks to each analyzed sector’s balance sheet appear controllable.
The government implemented reforms in recent years that contributed to general improvement in the balance sheet of the Mauritian economy and its subsectors.
The authors conclude that from a BSA perspective, the macroeconomic vulnerabilities of Mauritius seem manageable, though vulnerabilities remain and data gaps mean more work is needed to support these findings.

Currency mismatches: evidence indicates a decline in currency mismatches across various sectors over the decade reviewed.
Maturity mismatches: evidence indicates a decline in maturity mismatches across various sectors over the decade reviewed.
Intersectoral risks: intersectoral risks to each analyzed sector’s balance sheet appear controllable.
Policy reforms: recent government reforms have contributed to overall improvement in balance sheet positions for the economy and subsectors.
Data limitations: notable data gaps persist, limiting the robustness of some conclusions and indicating a need for further work.

Continue and deepen reforms that strengthen sectoral balance sheets, given their contribution to reduced currency and maturity mismatches.
Address persistent data gaps to enable more comprehensive and robust BSA monitoring and to validate the manageability of remaining vulnerabilities.
Monitor intersectoral exposures to ensure that identified controllable risks remain contained.