Mauritius: Growth rate of 3.6% projected for 2012

The Mauritian economy is maintaining its economic resilience with a Gross Domestic Product (GDP) growth rate of 3.6% projected for 2012, despite the negative impacts of the euro zone crisis affecting the world economy. The focus for this year will be on investment, increased productivity of businesses and diversifying the markets, the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Xavier-Luc Duval, said this morning, at a press conference in Port Louis.

Mr Duval underlined that Mauritius will be encouraging more foreign direct investment (FDI) from emerging economies such as China and will also tap the African continent to reduce its dependence on the European market given the fact that Sub-Saharan African economies are growing at a fast pace with a forecast growth rate of over 6% in the coming years.

The Vice-Prime Minister pointed out that various sectors of the Mauritian economy, namely tourism, exports, fish production, ICT/BPO, financial services, global business, domestic oriented industry and construction have registered positive growth. Nonetheless, he added that the country should be well prepared to better respond to the new set of challenges looming ahead in the context of uncertainties prevailing in the world economy.

As regards the key economic indicators, Mr Duval stated that inflation rate will decrease to reach around 4.5% in 2012 with a positive Balance of Payment of around Rs 2.5 billion. Budget deficit will be around 3.8% along with a decrease in public debt to 57%. Investment would grow by 0.5% in 2012 and FDI would revolve around the same figures as for 2011 that is an estimate of Rs 10 billion, he added.

Commenting on the India-Mauritius Double Taxation Avoidance Convention (DTAC), Minister Duval said that the Mauritian Government is fully collaborating with the Indian authorities. He is optimistic that both sides can conclude a mutually acceptable package that would yield a win-win outcome for both parties. Mauritius, he said, is attentive to the concerns expressed by the Indian authorities arising from the operation of the DTAC. He recalled that Mauritius has offered, as part of an all-inclusive package, to consider changes to the treaty that would address the Indian concerns, while ensuring that these do not affect the mutually beneficial effects of the treaty. Concrete proposals to that effect have been made to India.