Business Monitor International

Mauritius Business Forecast Report

Published 26 February 2014

  • 23 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
Mauritius Business Forecast Report

Core Views :

  • Growth in Mauritius will strengthen in 2014 and 2015, coming in at 3.9% and 4.3% respectively, from an estimated 3.1% in 2013. This is in large part predicated on the expected return to growth in Europe. The eurozone is a key trade partner for Mauritius, both in terms of services exports, in the form of tourism, and goods - sugar in particular. As the bloc emerges from two consecutive years of economic contraction - albeit sluggishly, with BMI forecasting an expansion of 1.1% - so Mauritius will benefit.

  • The Bank of Mauritius has maintained its current low benchmark interest rate, as BMI had projected. We believe that rates will be kept at this level for the next six months as growth concerns remain a priority, though we expect an increase in the second half of the year.

  • We believe that Mauritius' budget deficit will decline in 2014, despite the announcement of a fairly expansionary budget for the island state. Increased revenues as economic growth picks up, coupled with sound fiscal governance and a diversification in industry and trade partners, should ensure that the shortfall does not increase further.

Major Forecast Changes

Our 2014 real GDP growth forecast has been downgraded from last quarter's projection of 4.2%, to 3.9%. This is on the back of a revised outlook for investment in Mauritius; the construction sector continues to weigh on economic activity in the island state, and made a negative contribution to headline GDP growth in the most recent national accounts figures, for Q313.

Risks To Outlook

While we expect a recovery of sorts to take hold in the eurozone from 2014 onwards, a significant deterioration in conditions would pose notable risks to our growth outlook given Mauritius's exposure to the region.

Table of Contents

Executive Summary
Core Views
Major Forecast Changes
Key Risks To Outlook
Chapter 1: Political Outlook
SWOT Analysis
BMI Political Risk Ratings
Foreign Policy
Agreement Over Troubled Tax Talks Will Be Reached
Chapter 2: Economic Outlook
SWOT Analysis
BMI Economic Risk Ratings
Economic Activity
Weak Investment To Weigh On Growth
Monetary Policy
Economic Growth Remains Primary Concern Over Inflation
Fiscal Policy
Fiscal Shortfall To Narrow In 2014
Chapter 3: BMI Global Assumptions
Global Outlook
Fairly Benign Prognosis
Table: Global Assumptions
Table: Developed States, Real GDP GrowtH, %
Table: Emerging Markets, Real GDP Growth, %

The Mauritius Business Forecast Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Mauritius and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.

An influential new analysis of Mauritius' economic, political and financial prospects through end-2017, just published by award-winning forecasters, Business Monitor International (BMI).

Key Uses

  • Forecast the pace and stability of Mauritius' economic and industry growth through end-2017.
  • Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
  • Assess the critical shortcomings of the business environment that pose hidden barriers and costs to corporate profitability.
  • Contextualise Mauritius' country risks against regional peers using BMI's country comparative Risk Ratings system.
  • Evaluate external threats to doing business in Mauritius, including currency volatility, the commodity price boom and protectionist policies.

The Mauritius Business Forecast Report by Business Monitor International (BMI) includes two major sections: Economic Outlook and Political Outlook.

Economic Outlook:

How will the Mauritian economic policy-making and performance impact on corporate profitability over 2013-2017?

BMI provides our fully independent 5-year forecasts for Mauritius through end-2017 for more than 50 economic and key industry indicators. We evaluate growth, and also forecast the impact of economic management.

Economic Outlook Contents

The Mauritius Business Forecast Report features BMI's forecasts with supporting analysis for 2013 through to end-2017, set against government views and BMI's evaluation of global and regional prospects.

Key Areas Covered:


  • Full 10-year forecasts with data - for key macroeconomic variables including GDP (real growth and per capita), population, inflation, current account balance and the exchange rate.
  • BMI's comprehensive Risk Ratings system - rates each country worldwide for economic and political risk, and rates the business environment, within a global and regional context.

Written Analysis:

  • Economic Activity - real GDP growth, employment, inflation, consumption (retail sales and confidence).
  • Balance of Payments - trade and investment, current and capital account.
  • Monetary Policy - interest rate trends (bank lending and deposit rates) and inflation (producer price and consumer price).
  • Exchange Rate Policy - currency controls, foreign investment flows, exchange rates and foreign exchange reserves.
  • Fiscal Policy - macroeconomic strategy and policies, government finance and tax reforms.
  • Foreign Direct Investment - approvals, inflows and climate.
  • External Debt - debt profile (short and long-term plus public and private sector exposure).
  • Global Assumptions - forecasts for each year to end-2017 covering: major commodities, growth in key regions, inflation, and interest and exchange rates, in the United States, Japan, China and the eurozone.

Key Benefits

  • Rely upon BMI's 100% independent forecast scenarios for Mauritius and underlying assumptions - we take no advertising and are privately-owned.
  • Exploit the benefits of BMI's comprehensive and reliable macroeconomic database on Mauritius, sourced and fully maintained by BMI from an extensive network of private sector, government and multilateral contacts.
  • Gain key insights into the current and future direction of government economic policy, which could significantly affect your company's business prospects, from BMI's team of analysts and economists.

Political Outlook:

What are the political risks to doing business in Mauritius over the next 5-years?

BMI's Mauritius country Risk Ratings evaluate the short- and medium-term threats to political stability.

Political Outlook Contents

  • SWOT Analysis for the Mauritian Market - Political Strengths, Weaknesses, Opportunities and Threats facing Mauritius.
  • Political Stability and Risk Assessment - BMI's Risk Ratings assess explicit short- and long-term risks to political stability; latest ratings, rankings and trends for Mauritius' risk are compared with regional and global averages.
  • Current Administration and Policy-making BMI assesses the threats to the continuity of economic policy, and likely changes to the business operating environment.

Key Benefits

  • Benchmark Mauritius' risk profile against its neighbours, the global and regional average, allowing easy comparison of risks between key business markets.
  • Identify, evaluate and anticipate political and security risks to the business environment, and to your company's current operations and future plans.
  • Gain valuable insights into government and policy-making, through BMI's specialist team of analysts and economists, and their network of private and public sector sources.

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The sections that I find most interesting and useful are the macroeconomic data and forecasts for the country, top export destinations and economic activity. The indicators/analysis of these areas helps us orient our thinking, our assumptions and, consequently, our decisions in the commercial area.

Country Manager, DHL Express