The Chamber of Commerce and Industry expects Mauritius’ gross domestic product (GDP) to rebound by +5% this year, after a 14.9% contraction in 2020.
This is according to the ‘Statement on the state of the economy in 2020-2021′, published by the Chamber of Commerce on Thursday 9 September.
While Mauritius’ economy was hit hard by the Covid-19 pandemic, with tourism and manufacturing losing 80% and 17.8% of their value added to GDP last year, the economic outlook is improving in 2021. “Mauritius is on the road to recovery, with the full reopening of borders and no quarantine requirements as of 1 October 2021,” the report argues. However, for the Chamber of Commerce, structural deficiencies and weaknesses will need to be addressed by the government to strengthen the country’s resilience and improve productivity.
While assessing the health of the economy, MCCI pointed out that the productivity of some businesses had been impacted by new regulations introduced by the authorities, such as the sugar tax, the ban on non-reusable plastics and price controls on pharmaceuticals – all of which were implemented without consultation with the private sector.
Mauritius faces a triple deficit, the report says: first, a budget deficit of 5.6% of GDP projected for this year; second, a 12.6% trade deficit due to a shortfall in tourism receipts and over-reliance on imports; and third, a shortfall in domestic savings to finance investment.
The Chamber of Commerce has called on the authorities to manage public finances prudently. This institution also believes in the potential of new economic sectors, notably the free port, free trade zones, the blue economy, the circular economy and the pharmaceutical industry.
