"Le pays a un train de vie dont il n’a pas les moyens” argues Arnaud Lagesse the CEO of IBL

“Un train de vie” which neither the private sector nor the public sector is a model to emulate, least of all the public sector.

With a consolidated budget deficit which has reached -15.7% of GDP , when the average for EMMEs is -10.7% and -7.6% for Sub-Saharan Africa (before Covid it was-11.3% of GDP, the worst in Sub-Saharan Africa) and a gross public sector debt to GDP ratio that has crossed the 100% mark(inclusive of the Rs 60 bn of monetary deficit financing-abiding by GFS methodology) and whatever our opinion of a “parasitic rent-seeking”private sector, we do not need Mr Arnaud, now that the shoe is pinching, to tell us that we have to put our house in order if we do not want to jeopardize post-Covid recovery growth and thus avoid a possible social explosion.

The unsustainable levels of the budget deficit and the public sector debt are already impacting on the exchange rate, the rate of inflation and the balance of payments. Our current account deficit is expected to peak up to some -15% of GDP .

"Il y a de quoi " that eveybody is worried except Mr Payadachy who is still seeing green shoots all around. This regime seems to be suffering from "tunnel vision" !!!

8Prakash Neerohoo, Rashmee Daby and 6 others

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