{
  "title": "IMF Executive Board Concludes 2019 Article IV Consultation with Mauritius",
  "publication": "IMF News, April 23, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/04/23/pr19125-mauritius-imf-executive-board-concludes-2019-article-iv-consultation-with-mauritius",
  "canonical": "https://www.imf.org/en/news/articles/2019/04/23/pr19125-mauritius-imf-executive-board-concludes-2019-article-iv-consultation-with-mauritius",
  "overlayPath": "/en/news/articles/2019/04/23/pr19125-mauritius-imf-executive-board-concludes-2019-article-iv-consultation-with-mauritius/index.md",
  "summary": "Real GDP expanded by 3.8 percent in 2017 and is estimated to have grown at a similar rate in 2018.",
  "publishDate": "2019-04-23",
  "sections": [
    {
      "heading": "Economic performance and labor market",
      "content": "- Real GDP expanded by 3.8 percent in 2017 and is estimated to have grown at a similar rate in 2018.\n- Growth momentum expected to continue; Real GDP growth is projected at about 4 percent in the medium term.\n- Inflationary pressures are contained.\n- Unemployment rate has fallen to about 6.9 percent."
    },
    {
      "heading": "External sector, trade balance, and reserves",
      "content": "- External balance continues to deteriorate due to a rising trade deficit in goods, while the overall balance of payments remains in surplus.\n- International reserves have improved significantly since 2016, supported by continued financial inflows.\n- Directors agreed that the foreign exchange intervention policy should continue to build reserves buffers as conditions permit, to strengthen resilience to shocks."
    },
    {
      "heading": "Fiscal stance, public debt, and policy recommendations",
      "content": "- Fiscal stance is expansionary.\n- Without fiscal consolidation, the authorities’ debt target of 60 percent of GDP by FY2020/21 is unlikely to be met.\n- Public debt is projected to stay elevated over the forecast horizon and is susceptible to a range of macro-fiscal shocks.\n- Directors underscored the need for fiscal adjustment to enhance fiscal credibility, preserve debt sustainability, and reduce the external imbalance.\n- Directors urged a gradual fiscal consolidation beginning with the next budget for FY2019/20 to enhance fiscal credibility and to put public debt on a declining path.\n- The authorities are considering extending the debt target by two years; Directors emphasized the need for significant policy adjustment if targets are to be met."
    },
    {
      "heading": "Monetary policy and financial stability",
      "content": "- Monetary policy remains accommodative; Directors agreed that the monetary policy stance is broadly appropriate at the current juncture.\n- Directors encouraged authorities to continue efforts to contain excess liquidity in the banking system.\n- Recommendation to modernize the monetary policy framework: build capacity to announce and track a medium‑term inflation objective to enhance policy credibility and improve resilience to shocks.\n- A prudent stance by financial services firms and supervisory agencies has helped maintain financial stability.\n- Directors stressed the importance of implementing outstanding FSAP recommendations for further strengthening financial stability."
    },
    {
      "heading": "Offshore sector, AML/CFT, and international tax initiatives",
      "content": "- Activity in the offshore global business sector has been broadly resilient while reforms to the sector are underway.\n- Notable efforts pursued to meet international anti-tax avoidance initiatives and to strengthen the AML/CFT framework in line with FATF recommendations, though further reforms are needed to fully meet them.\n- Directors underscored the need to expeditiously implement the remaining recommendations of the Eastern and Southern African Anti Money Laundering Group (ESAAMLG).\n- As the revised tax treaty with India comes into effect, the global business sector is entering a transition phase; efforts underway to move into high-value added services and tap into other markets, notably in the region.\n- Directors appreciated authorities’ efforts to bolster competitiveness by improving the business climate, building innovation capacity, reducing skill mismatch, and increasing female workforce participation."
    },
    {
      "heading": "Data, statistics, and institutional recommendations",
      "content": "- Directors encouraged the authorities to continue to improve data quality.\n- Maintaining strong and independent institutions deemed essential to ensure the country remains an attractive investment and employment destination."
    },
    {
      "heading": "Projections, balances, and risks (select indicators and forecasts from Table 1)",
      "content": "- Real GDP per capita growth: 3.4 (2015), 3.7 (2016).\n- GDP per capita (in U.S. dollars): 9,259 (2015); 9,681 (2016); 10,491 (2017); 11,281 (2018); 11,694 (2019); 12,433 (2020); 13,226 (2021); 14,097 (2022); 14,947 (2023); 15,835 (2024).\n- GDP deflator: 1.0 (2015); 2.1 (2016); 1.4 (2017); 2.2 (2018); 2.6 (2019); 3.0 (2020); 2.9 (2021); 2.5 (2022); 2.4 (2023).\n- Consumer prices (period average): 1.3 (2015); 3.2 (2016); 3.5 (2017).\n- Consumer prices (end of period): 2.3 (2015); 4.3 (2016); 1.8 (2017); 4.1 (2018).\n- Unemployment rate (percent): 7.9 (2015); 7.3 (2016); 7.1 (2017); 6.9 (2018); 6.8 (2019); 6.7 (2020).\n- Exports of goods and services, f.o.b. (annual percent change): -10.1 (2015); -3.5 (2016); 5.9 (2017); 5.0 (2018); 5.5 (2019); 5.7 (2020).\n- Tourism receipts (annual percent change): -1.0 (2015); 9.8 (2016); 11.2 (2017); 7.2 (2018); 7.7 (2019); 7.8 (2020).\n- Imports of goods and services, f.o.b. (annual percent change): -12.2 (2015); -1.7 (2016); 11.4 (2017); 6.2 (2018).\n- Net foreign assets (annual change in percent): 15.6 (2015); 0.7 (2016); 5.3 (2017); 6.0 (2018); 6.3 (2019); 6.5 (2020); 7.6 (2021).\n- Net claims on government (annual change in percent): -6.2 (2015); 29.1 (2016); 28.5 (2017); 8.1 (2018); 8.3 (2019); 5.2 (2020).\n- Credit to non-government sector (annual change in percent): -0.8 (2015); 6.1 (2016); 5.4 (2017); 5.8 (2018).\n- Broad money (annual change in percent): 6.6 (2015); 7.0 (2016).\n- Overall consolidated balance (including grants, percent of GDP): -3.7 (2015); -3.3 (2016); -2.9 (2017); -3.0 (2018); -2.8 (2019).\n- Primary balance (excluding grants, percent of GDP): -1.4 (2015); -1.5 (2016); -1.8 (2017); -1.6 (2018).\n- Revenues (incl. grants, percent of GDP): 20.8 (2015); 21.1 (2016); 21.4 (2017); 23.3 (2018); 22.4 (2019); 22.1 (2020); 22.0 (2021); 21.7 (2022); 21.6 (2023); 21.5 (2024).\n- Expenditure, excl. net lending (percent of GDP): 24.5 (2015); 24.4 (2016); 24.3 (2017); 27.1 (2018); 25.4 (2019); 25.1 (2020); 24.9 (2021); 24.6 (2022); 24.2 (2023).\n- Domestic debt of central government (percent of GDP): 46.9 (2015); 49.2 (2016); 47.9 (2017); 49.4 (2018); 48.5 (2019); 48.6 (2020); 48.2 (2021); 47.5 (2022); 46.8 (2023); 46.1 (2024); 45.3 (projection year unspecified).\n- External debt of central government (percent of GDP): 12.7 (2015); 10.4 (2016); 9.4 (2017); 8.6 (2018); 9.5 (2019); 9.2 (2020); 9.6 (2021).\n- Gross domestic investment (percent of GDP): 18.1 (2015); 17.9 (2016); 18.3 (2017); 18.4 (2018); 21.2 (2019); 20.3 (2020); 20.4 (2021); 20.9 (2022).\n- Public investment (percent of GDP): 4.7 (2015); 4.4 (2016).\n- Private investment (percent of GDP): 13.4 (2015); 13.5 (2016); 14.1 (2017); 13.6 (2018); 14.4 (2019); 14.6 (2020); 14.9 (2021); 15.1 (2022).\n- Gross national savings (percent of GDP): 16.8 (2015); 17.3 (2016); 17.1 (2017); 16.9 (2018); 15.5 (2019); 15.4 (2020); 16.3 (2021).\n- Balance of goods and services (percent of GDP): -10.0 (2015); -10.3 (2016); -13.5 (2017); -13.7 (2018); -15.0 (2019); -13.8 (2020); -10.5 (2021); -9.1 (2022); -7.6 (2023).\n- Current account balance (percent of GDP): -3.6 (2015); -4.0 (2016); -5.6 (2017); -7.4 (2018); -6.7 (2019); -5.7 (2020); -5.5 (2021); -5.3 (2022); -5.0 (2023).\n- Capital and financial account (percent of GDP): 9.3 (2015); 10.9 (2016); 10.8 (2017); 8.0 (2018); 7.5 (2019).\n- Overall balance (percent of GDP): 4.9 (2015); 0.6 (2016); 0.8 (2017); (2018 value not displayed in table excerpt).\n- Total external debt (percent of GDP): 90.3 (2015); 86.6 (2016); 77.0 (2017); 78.5 (2018); 83.0 (2019); 82.9 (2020); 81.6 (2021); 80.4 (2022); 79.7 (2023); 78.9 (2024).\n- Gross international reserves (millions of U.S. dollars): 4,222 (2015); 4,934 (2016); 5,974 (2017); 6,329.9 (2018); 6,423 (2019); 6,552 (2020); 6,754 (2021); 6,978 (2022); 7,178 (2023); 7,534 (2024).\n- Months of imports of goods and services, f.o.b.: 8.2 (2015); 9.1 (2016).\n- GDP at current market prices (billions of Mauritian rupees): 409.9 (2015); 434.8 (2016); 457.5 (2017); 485.2 (2018); 517.0 (2019); 553.5 (2020); 592.9 (2021); 634.6 (2022); 676.6 (2023); 720.6 (2024).\n- GDP at current market prices (millions of U.S. dollars): 11,692 (2015); 12,232 (2016); 13,267 (2017); 14,277 (2018); 14,812 (2019); 15,757 (2020); 16,757 (2021); 17,856 (2022); 18,929 (2023); 20,051 (2024).\n- Public sector debt, fiscal year (percent of GDP): 66.9 (2015); 65.0 (2016); 63.7 (2017); 64.9 (2018); 67.5 (2019); 67.8 (2020); 66.7 (2021); 65.5 (2022); 64.4 (2023); 63.3 (2024).\n- Public sector debt, calendar year (percent of GDP): 63.6 (2015); 65.1 (2016).\n- Foreign and local currency long-term debt rating (Moody's): Baa1.\n\nIMF Executive Board Concludes 2019 Article IV Consultation with Mauritius (Press Release No. 19/125, April 23, 2019).\n\n---\n\n\n References\n\n- India and the IMF\n- Mauritius and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/04/23/pr19125-mauritius-imf-executive-board-concludes-2019-article-iv-consultation-with-mauritius"
    }
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    "[Structured JSON version](/en/news/articles/2019/04/23/pr19125-mauritius-imf-executive-board-concludes-2019-article-iv-consultation-with-mauritius/index.json)",
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    "Published: April 23, 2019",
    "Real GDP expanded by 3.8 percent in 2017 and is estimated to have grown at a similar rate in 2018.",
    "Growth momentum expected to continue; Real GDP growth is projected at about 4 percent in the medium term.",
    "Inflationary pressures are contained.",
    "Unemployment rate has fallen to about 6.9 percent.",
    "External balance continues to deteriorate due to a rising trade deficit in goods, while the overall balance of payments remains in surplus.",
    "International reserves have improved significantly since 2016, supported by continued financial inflows.",
    "Directors agreed that the foreign exchange intervention policy should continue to build reserves buffers as conditions permit, to strengthen resilience to shocks.",
    "Fiscal stance is expansionary.",
    "Without fiscal consolidation, the authorities’ debt target of 60 percent of GDP by FY2020/21 is unlikely to be met.",
    "Public debt is projected to stay elevated over the forecast horizon and is susceptible to a range of macro-fiscal shocks.",
    "Directors underscored the need for fiscal adjustment to enhance fiscal credibility, preserve debt sustainability, and reduce the external imbalance.",
    "Directors urged a gradual fiscal consolidation beginning with the next budget for FY2019/20 to enhance fiscal credibility and to put public debt on a declining path.",
    "The authorities are considering extending the debt target by two years; Directors emphasized the need for significant policy adjustment if targets are to be met.",
    "Monetary policy remains accommodative; Directors agreed that the monetary policy stance is broadly appropriate at the current juncture.",
    "Directors encouraged authorities to continue efforts to contain excess liquidity in the banking system.",
    "Recommendation to modernize the monetary policy framework: build capacity to announce and track a medium‑term inflation objective to enhance policy credibility and improve resilience to shocks.",
    "A prudent stance by financial services firms and supervisory agencies has helped maintain financial stability.",
    "Directors stressed the importance of implementing outstanding FSAP recommendations for further strengthening financial stability.",
    "Activity in the offshore global business sector has been broadly resilient while reforms to the sector are underway.",
    "Notable efforts pursued to meet international anti-tax avoidance initiatives and to strengthen the AML/CFT framework in line with FATF recommendations, though further reforms are needed to fully meet them.",
    "Directors underscored the need to expeditiously implement the remaining recommendations of the Eastern and Southern African Anti Money Laundering Group (ESAAMLG).",
    "As the revised tax treaty with India comes into effect, the global business sector is entering a transition phase; efforts underway to move into high-value added services and tap into other markets, notably in the region.",
    "Directors appreciated authorities’ efforts to bolster competitiveness by improving the business climate, building innovation capacity, reducing skill mismatch, and increasing female workforce participation.",
    "Directors encouraged the authorities to continue to improve data quality.",
    "Maintaining strong and independent institutions deemed essential to ensure the country remains an attractive investment and employment destination.",
    "Real GDP per capita growth: 3.4 (2015), 3.7 (2016).",
    "GDP per capita (in U.S. dollars): 9,259 (2015); 9,681 (2016); 10,491 (2017); 11,281 (2018); 11,694 (2019); 12,433 (2020); 13,226 (2021); 14,097 (2022); 14,947 (2023); 15,835 (2024).",
    "GDP deflator: 1.0 (2015); 2.1 (2016); 1.4 (2017); 2.2 (2018); 2.6 (2019); 3.0 (2020); 2.9 (2021); 2.5 (2022); 2.4 (2023).",
    "Consumer prices (period average): 1.3 (2015); 3.2 (2016); 3.5 (2017).",
    "Consumer prices (end of period): 2.3 (2015); 4.3 (2016); 1.8 (2017); 4.1 (2018).",
    "Unemployment rate (percent): 7.9 (2015); 7.3 (2016); 7.1 (2017); 6.9 (2018); 6.8 (2019); 6.7 (2020).",
    "Exports of goods and services, f.o.b. (annual percent change): -10.1 (2015); -3.5 (2016); 5.9 (2017); 5.0 (2018); 5.5 (2019); 5.7 (2020).",
    "Tourism receipts (annual percent change): -1.0 (2015); 9.8 (2016); 11.2 (2017); 7.2 (2018); 7.7 (2019); 7.8 (2020).",
    "Imports of goods and services, f.o.b. (annual percent change): -12.2 (2015); -1.7 (2016); 11.4 (2017); 6.2 (2018).",
    "Net foreign assets (annual change in percent): 15.6 (2015); 0.7 (2016); 5.3 (2017); 6.0 (2018); 6.3 (2019); 6.5 (2020); 7.6 (2021).",
    "Net claims on government (annual change in percent): -6.2 (2015); 29.1 (2016); 28.5 (2017); 8.1 (2018); 8.3 (2019); 5.2 (2020).",
    "Credit to non-government sector (annual change in percent): -0.8 (2015); 6.1 (2016); 5.4 (2017); 5.8 (2018).",
    "Broad money (annual change in percent): 6.6 (2015); 7.0 (2016).",
    "Overall consolidated balance (including grants, percent of GDP): -3.7 (2015); -3.3 (2016); -2.9 (2017); -3.0 (2018); -2.8 (2019).",
    "Primary balance (excluding grants, percent of GDP): -1.4 (2015); -1.5 (2016); -1.8 (2017); -1.6 (2018).",
    "Revenues (incl. grants, percent of GDP): 20.8 (2015); 21.1 (2016); 21.4 (2017); 23.3 (2018); 22.4 (2019); 22.1 (2020); 22.0 (2021); 21.7 (2022); 21.6 (2023); 21.5 (2024).",
    "Expenditure, excl. net lending (percent of GDP): 24.5 (2015); 24.4 (2016); 24.3 (2017); 27.1 (2018); 25.4 (2019); 25.1 (2020); 24.9 (2021); 24.6 (2022); 24.2 (2023).",
    "Domestic debt of central government (percent of GDP): 46.9 (2015); 49.2 (2016); 47.9 (2017); 49.4 (2018); 48.5 (2019); 48.6 (2020); 48.2 (2021); 47.5 (2022); 46.8 (2023); 46.1 (2024); 45.3 (projection year unspecified).",
    "External debt of central government (percent of GDP): 12.7 (2015); 10.4 (2016); 9.4 (2017); 8.6 (2018); 9.5 (2019); 9.2 (2020); 9.6 (2021).",
    "Gross domestic investment (percent of GDP): 18.1 (2015); 17.9 (2016); 18.3 (2017); 18.4 (2018); 21.2 (2019); 20.3 (2020); 20.4 (2021); 20.9 (2022).",
    "Public investment (percent of GDP): 4.7 (2015); 4.4 (2016).",
    "Private investment (percent of GDP): 13.4 (2015); 13.5 (2016); 14.1 (2017); 13.6 (2018); 14.4 (2019); 14.6 (2020); 14.9 (2021); 15.1 (2022).",
    "Gross national savings (percent of GDP): 16.8 (2015); 17.3 (2016); 17.1 (2017); 16.9 (2018); 15.5 (2019); 15.4 (2020); 16.3 (2021).",
    "Balance of goods and services (percent of GDP): -10.0 (2015); -10.3 (2016); -13.5 (2017); -13.7 (2018); -15.0 (2019); -13.8 (2020); -10.5 (2021); -9.1 (2022); -7.6 (2023).",
    "Current account balance (percent of GDP): -3.6 (2015); -4.0 (2016); -5.6 (2017); -7.4 (2018); -6.7 (2019); -5.7 (2020); -5.5 (2021); -5.3 (2022); -5.0 (2023).",
    "Capital and financial account (percent of GDP): 9.3 (2015); 10.9 (2016); 10.8 (2017); 8.0 (2018); 7.5 (2019).",
    "Overall balance (percent of GDP): 4.9 (2015); 0.6 (2016); 0.8 (2017); (2018 value not displayed in table excerpt).",
    "Total external debt (percent of GDP): 90.3 (2015); 86.6 (2016); 77.0 (2017); 78.5 (2018); 83.0 (2019); 82.9 (2020); 81.6 (2021); 80.4 (2022); 79.7 (2023); 78.9 (2024).",
    "Gross international reserves (millions of U.S. dollars): 4,222 (2015); 4,934 (2016); 5,974 (2017); 6,329.9 (2018); 6,423 (2019); 6,552 (2020); 6,754 (2021); 6,978 (2022); 7,178 (2023); 7,534 (2024).",
    "Months of imports of goods and services, f.o.b.: 8.2 (2015); 9.1 (2016).",
    "GDP at current market prices (billions of Mauritian rupees): 409.9 (2015); 434.8 (2016); 457.5 (2017); 485.2 (2018); 517.0 (2019); 553.5 (2020); 592.9 (2021); 634.6 (2022); 676.6 (2023); 720.6 (2024).",
    "GDP at current market prices (millions of U.S. dollars): 11,692 (2015); 12,232 (2016); 13,267 (2017); 14,277 (2018); 14,812 (2019); 15,757 (2020); 16,757 (2021); 17,856 (2022); 18,929 (2023); 20,051 (2024).",
    "Public sector debt, fiscal year (percent of GDP): 66.9 (2015); 65.0 (2016); 63.7 (2017); 64.9 (2018); 67.5 (2019); 67.8 (2020); 66.7 (2021); 65.5 (2022); 64.4 (2023); 63.3 (2024).",
    "Public sector debt, calendar year (percent of GDP): 63.6 (2015); 65.1 (2016).",
    "Foreign and local currency long-term debt rating (Moody's): Baa1.",
    "[India and the IMF](http://www.imf.org/external/country/IND/index.htm)",
    "[Mauritius and the IMF](http://www.imf.org/external/country/MUS/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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