IMF Staff Completes 2026 Article IV Mission to Mauritius

IMF News, May 4, 2026

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Mission led by Mariana Colacelli visited Mauritius from April 22 to May 4, 2026, for the 2026 Article IV Consultation.
The Mauritian economy showed resilience:
- Real GDP growth of 3.2 percent in 2025.
- Growth projected to slow to 2.8 percent in 2026 due to adverse spillovers from the war in the Middle East, most notably on tourism.
- Inflation picked up in 2025 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.
- Foreign reserves increased to US$ 10.3 billion at end-2025.

Near-term outlook has weakened amid heightened global uncertainty and the war in the Middle East.
Key downside risks highlighted:
- 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.
Macro-financial vulnerabilities warrant close monitoring, notably:
- Cross‑border activities.
- Real estate exposures.
- Global financial conditions.

Fiscal developments and projections:
- 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.
- Public debt is projected to remain elevated at around 88 percent of GDP at end-June 2026.
Policy recommendations to rebuild fiscal space and support sustainability:
- Enhanced revenue mobilization.
- Containment of current spending—particularly on pensions and extra-budgetary transfers.
- Protect the most vulnerable through well-targeted support, including temporary measures to deal with the effects of the war.
- Strengthen governance and adopt a rules-based fiscal framework.

Monetary policy stance and guidance:
- 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.
- The BOM’s independence must be safeguarded, with related amendments to the BOM Act promptly adopted.
Reserves and institutional actions:
- Maintaining adequate foreign reserves enhances resilience to external shocks.
- IMF team welcomed BOM’s decision to promptly return undisbursed funds from Mauritius Investment Corporation (MIC) to the BOM, and plans to gradually phase out the rest of BOM’s investment in MIC.
Financial sector monitoring:
- Macro‑financial risks remain contained but require close monitoring.

Structural reform priorities to sustain growth and address imbalances:
- Foster competitiveness.
- Enhance labor supply and skills.
- Support private investment.
- Strengthen climate resilience.
- Improve governance.
- Sustain compliance with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards and ensure effectiveness.
Data and institutional developments:
- Mauritius subscribed to the Special Data Dissemination Standard Plus (SDDS Plus), becoming the first country in Africa to do so.
- Authorities committed to further strengthening institutional independence and the statistical framework, in line with recommendations from the IMF’s Report on the Observance of Standards and Codes (ROSC).

IMF Staff statement following the April 22–May 4, 2026 Article IV mission to Mauritius.