06 January 2010

Mauritius - Economic Indicators: Growth rate of 4.3% expected in 2010

On the basis of information gathered on key sectors of the economy and taking into consideration measures announced in the last budget, Gross Domestic Product is expected to grow by around 4.3% in 2010, higher than the 2.8% growth in 2009, says the latest issue of the Economic Indicators.

Exclusive of sugar, the growth rate would be around 4.4% compared to 2.4% in 2009. The main assumptions used are:

  • Sugarcane/sugar milling: sugar production of around 480 000 tonnes, resulting in growth of 1.1% compared to 21.1% in 2009,
  • Manufacturing Industries: to expand by around 1.7% compared to 0.6% in 2009,
  • Construction: to grow at a higher rate of 8.0% as opposed to 3.0% in 2009 mainly due to the frontloading of public sector investment projects (road infrastructure, hospitals, airport, housing, schools, etc.) as announced in the last budget,
  • Hotels and restaurants: a growth of around 5.0% based on a forecast of 900 000 tourist arrivals compared to 860 000 in 2009, assuming some recovery in our main markets and positive effects of the holding of the world football competition in the region,
  • Transport, storage and communications: to grow by 6.0% slightly higher than the 5.3% growth in 2009, mostly due to expected better performances in air transport and tourism related activities.
  • Financial intermediation: to grow at a higher rate of 6.0%, compared to the 5.0% growth in 2009, due to expected pick up of the economy in 2010, and
  • Business activities: to grow by 8.5% compared to 8.1% in 2009, explained by expected higher activities in ICT industry as well as in property development.

No comments: