Port Louis, Mauritius: An International Monetary Fund (IMF) mission led by Mariana Colacelli visited Mauritius from April 22 to May 4, 2026, to hold discussions for the 2026 Article IV Consultation.
At the conclusion of the visit, Ms. Colacelli issued the following statement:
“The Mauritian economy has exhibited resilience. Real GDP grew by 3.2 percent in 2025, supported by continued strength in services—including tourism and financial services—and moderated by a contraction in construction. Growth is projected to slow further in 2026 to 2.8 percent, due to adverse spillovers from the war in the Middle East, most notably on tourism.
“Inflation picked up in 2025, partly due to policy‑related price increases, and eased in early 2026, remaining within the Bank of Mauritius’ (BOM) target range of 2-5 percent. Inflation is expected to increase in 2026 due to higher international fuel and food prices, before moderating through 2027.
“The external current account deficit is estimated to have widened in 2025 while foreign reserves increased to US$ 10.3 billion at end-2025.
“Further deterioration in global growth and financial conditions, including from a prolonged war in the Middle East, would dampen growth. Higher global energy and food prices may increase inflation expectations and weaken the external position. In a risk scenario, delays in recalibrating the macroeconomic policy mix may lead to a more difficult adjustment process.
“Policy discussions centered on the impact of the war in the Middle East on Mauritius and the policy response, rebuilding fiscal space, strengthening the monetary policy framework, and maintaining financial stability.
“The fiscal position is projected to significantly improve in FY2025/26, albeit at a slower pace than envisaged under the budget. The primary fiscal deficit (excluding grants) is projected to narrow to 3.5 percent of GDP, from 6.5 percent of GDP in FY2024/25. The improvement mostly reflects higher revenues, mainly from the Fair Share Contribution. Public debt is projected to remain elevated at around 88 percent of GDP at end-June 2026. Maintaining efforts to rebuild fiscal buffers is critical to support fiscal sustainability. This requires enhanced revenue mobilization and containment of current spending—particularly on pensions and extra-budgetary transfers—while protecting the most vulnerable through well-targeted support, including temporary measures to deal with the effects of the war. Stronger governance and a rules-based fiscal framework should support these efforts.
“The monetary policy stance has been broadly appropriate. Monetary policy should remain forward-looking with BOM ready to tighten policy should inflation expectations move above its target range. The implementation of the monetary policy framework should be strengthened, and the BOM’s independence must be safeguarded, with related amendments to the BOM Act promptly adopted. Maintaining adequate foreign reserves enhances the resilience of the economy in the face of external shocks. We welcome the BOM’s decision to promptly return undisbursed funds from Mauritius Investment Corporation (MIC) to the BOM, and the plans to gradually phase out the rest of BOM’s investment in MIC.
“Macro-financial risks remain contained, though vulnerabilities related to cross‑border activities, real estate exposures, and global financial conditions warrant close monitoring.
“Advancing structural reforms that foster competitiveness, enhance labor supply and skills, support private investment, and strengthen climate resilience will be essential for durable growth, alongside reducing external and fiscal imbalances over the medium term. Reform priorities include improving governance, as well as sustaining compliance with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards and ensuring its effectiveness.
“Mauritius has become the first country in Africa to subscribe to the Special Data Dissemination Standard Plus (SDDS Plus)—the highest tier of the IMF’s Data Standards Initiatives. This important achievement underscores the authorities’ commitment to data quality and transparency. In addition, in line with recommendations from the IMF’s Report on the Observance of Standards and Codes (ROSC), the authorities expressed commitment to further strengthening institutional independence and the statistical framework. “The IMF team thanks the Mauritian authorities and other counterparts for the constructive and open dialogue and warm hospitality.”
