Mauritius: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; Statement by the Staff Representatives; and Statement by the Executive Director for Mauritius

IMF Staff Country Reports, June 6, 2007

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Canonical URL: Mauritius: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; Statement by the Staff Representatives; and Statement by the Executive Director for Mauritius

The loss of trade preferences in textiles in 2005, the reform to the European Union’s sugar protocol for 2006–10, and higher international oil prices have brought about a permanent deterioration in Mauritius’s terms of trade.
This 2007 Article IV Consultation highlights that the authorities have initiated broad-based reforms to address recent economic setbacks and to raise growth to levels of the previous two decades.
Executive Directors have welcomed the authorities’ efforts to tighten monetary policy. This should help to reduce inflation and avoid entrenching inflation expectations.

Permanent deterioration in terms of trade driven by:
- Loss of trade preferences in textiles in 2005.
- Reform to the European Union’s sugar protocol for 2006–10.
- Higher international oil prices.
Authorities initiated broad-based reforms aimed at:
- Addressing recent economic setbacks.
- Raising growth to levels of the previous two decades.
Executive Directors’ assessment:
- Welcomed tightening of monetary policy.
- Anticipated outcome: reduction in inflation and avoidance of entrenching inflation expectations.