## Press Release: IMF Staff Statement at the Conclusion of a Staff Visit to Mauritius

_IMF News, February 20, 2009_

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**Canonical URL:** [Press Release: IMF Staff Statement at the Conclusion of a Staff Visit to Mauritius](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr0943)

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## Bibliographic details
- Published: February 20, 2009

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### Mission visit and meetings
- Mission led by Christina Daseking, Advisor in the IMF’s African Department.
- Visit occurred during February 17-20, to review recent economic developments and discuss macroeconomic policies in light of the global financial crisis.
- Meetings held with:
  - Prime Minister Navinchandra Ramgoolam
  - Minister of Finance and Economic Empowerment Ramakrishna Sithanen
  - Governor Rundheersing Bheenick
  - Other senior government officials, private sector representatives, and donors.
- Team expressed gratitude for the authorities’ hospitality and noted the benefit of fruitful discussions.

### Macroeconomic assessment
- “As a result of sustained economic reforms over the last few years, Mauritius’s macroeconomic fundamentals are solid.”
- Fiscal position improved and the public debt-to-GDP ratio declined.
- Economic growth reached its highest level in a decade in 2008.
- Mauritian banking system described as remaining well capitalized and liquid, despite stress in banks in many countries.
- Inflation fell to just above 5 percent in January, measured on a year-on-year basis; the mission considered this measure more appropriate than the frequently used backward-looking average for guiding monetary policy.

### External environment, projections, and key statistics
- A sharply deteriorating external environment is posing significant challenges.
- Projected economic growth: 2 percent in 2009.
- Comparison: more than 5 percent in 2008.
- Current account deficit expected to rise to 11 percent of GDP, notwithstanding falling prices for food and fuel.
- Price developments: falling food and fuel prices contributing to lower inflation.

### Policy recommendations and priorities
- Welcomed the government’s proactive policy response in the form of a fiscal stimulus package and co-ordinated monetary easing.
- Emphasized need to remain vigilant to:
  - Maximize the impact of the stimulus while containing fiscal and balance of payments pressures.
  - Improve the efficiency of public spending.
  - Further support private investment by removing administrative bottlenecks.
- Recommended measures to address global recession effects:
  - Strengthen competitiveness.
  - Protect the most vulnerable groups through reforms of state enterprises.
  - Replace poorly targeted price subsidies and social programs with a well-targeted social safety net.
- On monetary policy and exchange rate front:
  - In considering further easing, continue to prevent excessive exchange rate movements.
  - Maintain a prudent level of international reserves.

### IMF engagement going forward
- The IMF will maintain a close policy dialogue with the authorities and continue to provide technical assistance to Mauritius.
- A team expected to return to Mauritius for the next Article IV consultation in the second half of this year.

*Press Release No. 09/43*

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## References

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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr0943_