Business Monitor International

Mauritius Country Risk Report

Published 19 November 2014 | Quarterly

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

Core Views:

  • The Mauritian economy will record real growth of 4.2% in 2015 and 2016, picking up from an estimated 3.5% in 2014. Private consumption will be the major contributor to headline growth. The Mauritian economy will record real growth of 4.2% in 2015 and 2016, picking up from an estimated 3.5% in 2014. Private consumption will be the major contributor to headline growth.

  • We forecast a cumulative hike of 50 basis points to Mauritius's Key Repo Rate in 2015. Although inflation remains low, concerns over saving levels will see rates raised, especially as real GDP growth picks up.

  • The dissolution of the Mauritian parliament makes a new election before the end of 2014 likely. The victors in this will be the new coalition between the PTr and the MMM, which will herald constitutional change in the island state. However, the formation of a new political opposition alliance will challenge their plans.

Major Forecast Changes

Our 2015 real GDP growth forecast has been upgraded from last quarter's projection of 4.0%, to 4.2%. This is on the back of a pickup in European visitors to the country.

Risks To Outlook

While we expect the eurozone recovery to strengthen in 2015, a significant deterioration in conditions would pose notable risks to our growth outlook given Mauritius's exposure to the region. France in particular gives cause for concern given its macroeconomic weaknesses and political failure to deal with them.

Macroeconomic Forecasts (Mauritius 2012-2018)
Indicator 2012 2013 2014f 2015f 2016f 2017f 2018f
Nominal GDP, USDbn 11.4 11.9 12.4 13.3 14.6 16.0 17.4
Real GDP growth, % y-o-y 3.3 3.2 3.5 4.2 4.2 4.3 4.4
Consumer price inflation, % y-o-y, eop 3.2 4.0 3.0 4.3 4.5 4.4 4.5
Exchange rate MUR/USD, eop 30.55 30.05 30.50 30.00 29.60 29.40 29.30
Budget balance, % of GDP -1.8 -3.8 -3.5 -3.0 -2.9 -2.6 -2.3

Table of Contents

Executive Summary
Core Views
Major Forecast Changes
Key Risks To Outlook
Chapter 1: Political Outlook
SWOT Analysis
BMI Political Risk Index
Domestic Politics
Electoral Reform Becoming Defining Election Issue
Table: 2010 Legislative Election Results
Chapter 2: Economic Outlook
SWOT Analysis
BMI Economic Risk Index
Economic Activity
Tourism Recovery Will Fuel Growth In 2015
Table: Economic Activity
Monetary Policy
Cumulative 50bps Hike In 2015
Table: Monetary Policy
Exchange Rate Policy
MUR: Positive Fundamentals Will Outweigh Ominous Technicals
Table: BMI Currency Forecast
Chapter 3: 10-Year Forecast
The Mauritian Economy To 2023
Service Industries To Drive Long-Term Growth
Table: Long-Term Macroeconomic Forecasts
Chapter 4: BMI Global Assumptions
Global Outlook
Reality Check: Uncertainty Reigns
Table: Global Assumptions
Table: Developed States, Real GDP Growth, %
Table: Emerging Markets, Real GDP Growth, %

The Mauritius Country Risk 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 Country Risk 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 Country Risk 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.

Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%


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