Mauritian Economy on the right track, says IMF Mission Director

The Mauritian economy is evolving positively with an achievable growth rate within the range of 3-4 per cent, which is a respectable accomplishment in terms of per capita as compared to other countries across the world, said the International Monetary Fund (IMF) Mission Director for Mauritius, Dr. Mauro Mecagni.

Dr Mecagni made this statement this morning during a courtesy call on the Prime Minister, Sir Anerood Jugnauth, at the Treasury Building in Port Louis in the presence of the Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, the Governor of the Bank of Mauritius, Mr R. Basant Roi and the Financial Secretary, Mr Dev Manraj.

The IMF mission Director for Mauritius spoke of the inflation rate which is under control in addition to the positive growth rate which he said are the results of three factors namely:  favourable external factors particularly the decline in fuel prices; careful management of the excess of liquidity by the Central Bank; and fiscal management. He commended the Mauritian authorities for adopting a combination of sound, domestic and macro-economic management measures to keep the economy on the right track.

Moreover, he outlined the vulnerability of the economy which is exposed to external risks owing to its incredibly open economy both from a macro-economic and financial perspective. On that score he proposed to reactivate the Financial Stability Committee to ensure amongst others, greater coordination of the financial system among the various institutions; better monitoring of the situation; and adoption of necessary measures in the wake of an impact from the external spillovers.

According to him Sub-Saharan Africa remains the fastest growing region in the world despite the volatility in financial markets and commodity prices coupled with other external factors that may cause hindrance to economic development.

For his part, the Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, spoke of the commendable job of the FMI, in collaboration with the various stakeholders, in devising ways and means to ensure that no external systemic crisis impacts negatively on the Mauritian economy.

The IMF delegation is in Mauritius in the context of the 2015 Article IV Consultations. The delegation also had working sessions with various stakeholders.