After facing the unprecedented impact of the COVID-19 pandemic, the Mauritian economy recovered relatively quickly during 2022. Although macroeconomic vulnerabilities remain, this recovery – supported by policy measures put in place by the public and private sectors – is an encouraging sign as it demonstrates our country’s resilience and adaptability to exogenous shocks, while underscoring the strength of the local economy. This is what the SBM Group highlights in the latest edition of its ‘SBM insights’ report, published on Tuesday 14 March 2023.
Based on the latest trends and indicators, economic growth is estimated at more than 7% in 2022, which is a significant improvement on the 3.5% recorded in 2021. In 2023, the economic growth rate is expected to reach 5.2% according to the SBM Group. This forecast takes into account the statistical effects that are already reflected in last year’s perceptible recovery and the dynamic operating environment. It also takes into account the restoration of business confidence and the targeted support and strategic initiatives launched by the public and private sectors to maintain the country’s productivity and competitiveness levels.
On the other hand, the growth outlook for 2023 would be impacted by the deteriorating international landscape. According to the International Monetary Fund and the World Bank, global growth is expected to slow down significantly this year. It should be added that the uncertainty surrounding the country’s growth prospects remains relatively high due to the low visibility on the evolution of the global operating environment in the coming periods.
Against this backdrop, the key objectives for Mauritius are to further strengthen the growth recovery, while addressing the still perceptible, albeit recovering, effects of the pandemic, as well as deepening the foundations for achieving high economic growth over the long term.
“At the same time, a major challenge for the country is to continuously expand and diversify its economic space (with a focus on consolidating current efforts to create and develop new pillars, including the pharmaceutical industry and the green economy), while solidifying the attractiveness and substance of its international financial center as a gateway for trade and investment within the ‘golden triangle’ linking Asia, Africa and the Middle East. On the other hand, the country stands to gain by strengthening the foundations for sustainable progress, including a climate-resilient, low-carbon and resource-efficient economy,” says Mr. Nuvin Balloo, Chief Economist at SBM Holdings Ltd, in the 13th edition of SBM insights.