Business Monitor International


Mauritius Business Forecast Report

Published 28 May 2014

  • 23 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,195.00
Mauritius Business Forecast Report

Core Views:

  • In 2014 we forecast that real GDP growth in Mauritius will strengthen to 3.8%, from 3.2% in 2013.Accommodative monetary policy and an improving global macroeconomic picture will drive growth, though we caution that a stall in the projected European recovery would harm the Mauritian economy and lead to slower growth than we currently project.

  • The Bank of Mauritius maintained its Key Repo Rate at 4.65% at its most recent monetary policy committee meeting, as BMI had expected. We envisage 30 basis points of rate hikes by the end of the year, to 4.95%, as a projected pickup in economic growth will increase inflationary pressures.

  • A hoped-for recovery in European visitor numbers to Mauritius has not yet begun to play out, according to January to February data. Although tourist arrivals to the Indian Ocean country are up marginally overall, we believe that a resurgence in arrivals from Europe will be a key factor in ensuring improved economic growth in 2014, and so the latest visitor numbers add risk to our growth outlook.

Major Forecast Changes

Our 2014 real GDP growth forecast has been downgraded from last quarter's projection of 3.9%, to 3.8%. 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 Q413.

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.

Macroeconomic Forecasts (Mauritius 2012-2015)
Indicator 2012e 2013e 2014f 2015f
Real GDP growth, % y-o-y 3.3 3.2 3.8 4.2
Nominal GDP, USDbn 11.4 11.9 12.7 14.0
Consumer price inflation, % y-o-y, eop 3.2 4.0 4.0 4.8
Exchange rate MUR/USD, eop ...

Table of Contents

Executive Summary
5
Core Views
5
Major Forecast Changes
5
Key Risks To Outlook
5
Chapter 1: Political Outlook
7
SWOT Analysis
7
BMI Political Risk Ratings
7
Domestic Politics
8
Opposition Split Potential Setback For Reform
8
Table: 2010 Legislative Election Results
8
Chapter 2: Economic Outlook
9
SWOT Analysis
9
BMI Economic Risk Ratings
9
Economic Activity
10
GDP Growth Accelerating
10
Table: ECONOMIC ACTIVITY
10
Monetary Policy
11
Rate Hike Expected By Year-End
11
Table: MONETARY POLICY
12
Economic Policy
13
Tax Uncertainty Potential Drag On Growth
13
Chapter 3: BMI Global Assumptions
15
Global Outlook
15
Growth Increasingly Polarised
15
Table: Global Assumptions
15
Table: Developed States, Real GDP GrowtH, %
16
Table: BMI VERSUS BLOOMBERG CONSENSUS REAL GDP GROWTH FORECASTS, %
16
Tab le: Emerging Markets , Rea l GDP Growt h, %
17

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:

Data:

  • 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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Testimonials

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