## Press Release: Statement at the Conclusion of an Article IV Mission to Mauritius

_IMF News, November 3, 2009_

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**Canonical URL:** [Press Release: Statement at the Conclusion of an Article IV Mission to Mauritius](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09385)

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## Bibliographic details
- Published: November 3, 2009

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### Mission overview
- An International Monetary Fund (IMF) mission headed by Atish Ghosh visited Mauritius during October 19-31, 2009 to conduct Article IV consultation with the authorities.
- The mission met with Prime Minister Dr. The Honorable Navinchandra Ramgoolam; Dr. The Honorable Vice Prime Minister and Minister of Finance an Empowerment Rama Sithanen; Governor of the Bank of Mauritius Rundheersing Bheenick; other senior government officials; and representatives of the private sector and civil society.
- Statement issued by Mr. Atish Ghosh, Mission Chief for Mauritius, in Port Louis on November 3, 2009.

### Assessment of policy response to the global financial crisis
- The mission welcomed the prompt and comprehensive policy response, which included:
  - fiscal stimulus;
  - monetary loosening; and
  - direct measures, developed in cooperation with the private sector, to help preserve jobs (such as the Mauritius Approach, Work and Training Scheme, and targeted/time bound tax relief).
- The mission judged that these measures have helped cushion the economy from the impact of the crisis and better positioned Mauritius to benefit from an upturn in the world economy.

### Economic outlook and uncertainty
- The economic outlook for Mauritius is subject to an unusually high degree of uncertainty, mirroring the global economy.
- Initial positive indications were noted, including in the tourism and other export sectors.
- Growth next year is expected to be considerably stronger than in 2009.

### Fiscal policy guidance
- The key policy challenge is to determine when to resume fiscal consolidation without jeopardizing the recovery by prematurely withdrawing stimulus.
- Policy recommendations:
  - Hold some stimulus measures contingently in reserve and deploy them only if the recovery seems to be faltering; the announced stimulus package has in part this contingent feature.
  - As the effects of the global crisis pass, resume efforts at fiscal consolidation.
  - Implement an effective debt management strategy to help place public debt back on a downward path.

### Monetary policy guidance
- The Monetary Policy Committee (MPC), established in 2007, was recognized as a major step in enhancing the monetary policy framework.
- The MPC appropriately lowered the key policy interest rate last year and earlier this year in the face of weakening activity.
- Pending further indications on economic prospects, the interest rate should be maintained at its current level, while remaining vigilant should inflationary pressures arise as the world economy recovers.

### Structural reforms, competitiveness, and statistics
- The mission welcomed structural reforms in recent years that have contributed to raising Mauritius’s competitiveness.
- Recommendations to strengthen competitiveness and international standing:
  - Maintain reform momentum.
  - Enhance the quality, coverage, and timeliness of macroeconomic statistics to meet the IMF’s Special Data Dissemination Standard (SDDS).
  - Strengthening these areas will further enhance Mauritius’s ability to compete with other emerging market and advanced economies, including as an important international financial center.

### IMF support and next steps
- The IMF stands ready to continue to assist the authorities in the implementation of their economic program, including through the provision of technical assistance.
- The IMF looks forward to continued fruitful policy dialogue in the period ahead.

*Press Release No. 09/385 — Statement at the Conclusion of an Article IV Mission to Mauritius (November 3, 2009).*

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## References

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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09385_