## IMF Staff Completes 2025 Article IV Mission to Mauritius

_IMF News, April 11, 2025_

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**Canonical URL:** [IMF Staff Completes 2025 Article IV Mission to Mauritius](https://www.imf.org/en/news/articles/2025/04/10/pr-25100-mauritius-imf-staff-completes-2025-article-iv-mission-to-mauritius)

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## Bibliographic details
- Published: April 11, 2025

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### Mission details
- IMF mission led by Mariana Colacelli visited Mauritius from March 31 to April 11, 2025, to conduct the 2025 Article IV Consultation.
- Press release date: April 11, 2025.
- End-of-mission statement conveys preliminary findings of IMF staff; these views do not necessarily represent the views of the IMF’s Executive Board.

### Economic performance and outlook
- Real GDP grew by 4.7 percent in 2024, driven by services, construction, and tourism.
- Real GDP growth is projected to soften to 3.0 percent in 2025 due to weakening external demand, easing tourism activity, and the severe drought.
- Headline inflation:
  - Eased in 2024 to 3.6 percent from 7.0 percent in 2023.
  - Was 2.5 percent in March (2025), remaining within the Bank of Mauritius’ (BOM) target range of 2-5 percent.
  - Drivers of lower inflation: declining international food and energy prices, and lower fuel excise duties.
- External sector:
  - The external current account deficit is estimated to have widened in 2024.
  - Foreign reserves increased to US$ 8.4 billion at end-2024.

### Risks and vulnerabilities
- Downside risks:
  - Deterioration in global growth and higher uncertainty in trade and financial markets could dampen growth.
  - Delays in recalibrating the macroeconomic policy mix could lead to a disorderly adjustment.
  - Extreme climate events could damage infrastructure and agriculture, weakening tourism and growth.
- Macro-financial risks to monitor:
  - Risks associated with global business companies operating in the Mauritius International Financial Center.
  - Risks in the real estate sector.

### Fiscal policy, debt, and recommendations
- Fiscal stance:
  - As in fiscal year 2023/24, the fiscal policy stance in fiscal year 2024/25 is expected to be expansionary.
  - The primary fiscal deficit is projected to widen to 6.6 percent of GDP, excluding grants.
  - Public debt is projected to reach almost 90 percent of GDP at end-June 2025.
- Policy recommendations:
  - Implement an ambitious medium-term growth-friendly fiscal consolidation plan, starting in fiscal year 2025/26, to rebuild fiscal space and support fiscal sustainability.
  - Boost tax revenue.
  - Reduce current spending while protecting the most vulnerable.
  - Strengthen fiscal governance.

### Monetary policy, reserves, and central bank governance
- Since 2023, the monetary policy stance has become less accommodative and inflation has decreased to BOM’s target range.
- Recommendations:
  - BOM should remain ready to further tighten the monetary policy stance should inflationary pressures revive.
  - Strengthen implementation of the monetary policy framework.
  - Safeguard BOM independence.
  - Conserve foreign reserves to enhance resilience to external shocks.
  - Support for authorities’ plans to gradually phase out the BOM’s ownership of the Mauritius Investment Corporation.

### Structural reforms and climate resilience
- Priority reforms to reduce external imbalances and foster private sector-led growth:
  - Improve governance.
  - Sustain compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.
  - Boost private sector competitiveness.
  - Enhance labor supply and skills.
  - Advance climate resilience measures to protect infrastructure, agriculture, and tourism.

*Source: IMF Staff press release, April 11, 2025.*

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_Source: https://www.imf.org/en/news/articles/2025/04/10/pr-25100-mauritius-imf-staff-completes-2025-article-iv-mission-to-mauritius_