Country Spotlight : Mauritius
Inflation would rise to 5.7% in 2026
The budget deficit is projected “to remain relatively elevated” at around 6.3% of GDP. (𝘾𝙤𝙢𝙢𝙚𝙣𝙩: 𝙧𝙖𝙩𝙝𝙚𝙧 𝙘𝙤𝙣𝙨𝙚𝙧𝙫𝙖𝙩𝙞𝙫𝙚)
Budgetary Central Govt Debt at June 26 is forecast at 79.5% of GDP. (𝘾𝙤𝙢𝙢𝙚𝙣𝙩: 𝙅𝙪𝙨𝙩 𝙖𝙗𝙤𝙪𝙩)
Public sector Debt in June 26 is expected to reach 89.5% of GDP. (𝘾𝙤𝙢𝙢𝙚𝙣𝙩: 𝙅𝙪𝙨𝙩 𝙖𝙗𝙤𝙪𝙩)
External current account deficit is projected at 6.9% of GDP in 2026 (𝗖𝗼𝗺𝗺𝗲𝗻𝘁: 𝗠𝗼𝗿𝗲 𝗹𝗶𝗸𝗲𝗹𝘆 𝘁𝗼 𝗲𝘅𝗰𝗲𝗲𝗱 𝘁𝗵𝗲 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝗳𝗶𝗴𝘂𝗿𝗲 𝗼𝗳 𝟳.𝟭% 𝗶𝗻 𝟮𝟬𝟮𝟱, 𝗰𝗹𝗼𝘀𝗲𝗿 𝘁𝗼 𝟴% 𝗶𝗻𝘀𝘁𝗲𝗮𝗱)
Investment is estimated at 19.7% of GDP in 2026, same as in 2025. The investment level is deemed insufficient to underpin a sustained improvement in in long run growth potential and to meet socio economic ambitions.
Financial services are expected to remain the main driver for growth.
Tourism will show soft growth in 2026, compared to record performance in 2025.
The Report makes multiple references to the need for preserving the country’s investment grade rating.
First in the foreword, in relation to the country’s positioning within Africa – “𝘐𝘯 𝘵𝘩𝘪𝘴 𝘤𝘰𝘯𝘵𝘦𝘹𝘵, 𝘱𝘳𝘦𝘴𝘦𝘳𝘷𝘪𝘯𝘨 𝘔𝘢𝘶𝘳𝘪𝘵𝘪𝘶𝘴’ 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵-𝘨𝘳𝘢𝘥𝘦 𝘴𝘰𝘷𝘦𝘳𝘦𝘪𝘨𝘯 𝘳𝘢𝘵𝘪𝘯𝘨 𝘳𝘦𝘮𝘢𝘪𝘯𝘴 𝘢 𝘤𝘰𝘳𝘯𝘦𝘳𝘴𝘵𝘰𝘯𝘦 𝘰𝘧 𝘵𝘩𝘦 𝘐𝘍𝘊’𝘴 (𝘐𝘯𝘵𝘦𝘳𝘯𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘊𝘦𝘯𝘵𝘳𝘦) 𝘳𝘦𝘱𝘶𝘵𝘢𝘵𝘪𝘰𝘯, 𝘶𝘯𝘥𝘦𝘳𝘱𝘪𝘯𝘯𝘪𝘯𝘨 𝘪𝘵𝘴 𝘤𝘳𝘦𝘥𝘪𝘣𝘪𝘭𝘪𝘵𝘺 𝘢𝘯𝘥 𝘳𝘦𝘪𝘯𝘧𝘰𝘳𝘤𝘪𝘯𝘨 𝘪𝘵𝘴 𝘢𝘵𝘵𝘳𝘢𝘤𝘵𝘪𝘷𝘦𝘯𝘦𝘴𝘴 𝘢𝘴 𝘢 𝘭𝘦𝘢𝘥𝘪𝘯𝘨 𝘱𝘭𝘢𝘵𝘧𝘰𝘳𝘮 𝘧𝘰𝘳 𝘵𝘳𝘢𝘥𝘦 𝘢𝘯𝘥 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘪𝘯 𝘈𝘧𝘳𝘪𝘤𝘢".
Second, as a supportive force for growth of the financial services sector – “𝘐𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘨𝘳𝘢𝘥𝘦 𝘳𝘢𝘵𝘪𝘯𝘨 𝘰𝘧 𝘵𝘩𝘦 𝘫𝘶𝘳𝘪𝘴𝘥𝘪𝘤𝘵𝘪𝘰𝘯, 𝘳𝘦𝘪𝘯𝘧𝘰𝘳𝘤𝘪𝘯𝘨 𝘤𝘳𝘦𝘥𝘪𝘣𝘪𝘭𝘪𝘵𝘺 𝘧𝘰𝘳 𝘪𝘯𝘵𝘦𝘳𝘯𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘦𝘹𝘱𝘢𝘯𝘴𝘪𝘰𝘯 𝘣𝘺 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘪𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘪𝘰𝘯𝘴 𝘢𝘯𝘥 𝘦𝘯𝘩𝘢𝘯𝘤𝘪𝘯𝘨 𝘢𝘵𝘵𝘳𝘢𝘤𝘵𝘪𝘷𝘦𝘯𝘦𝘴𝘴 𝘵𝘰 𝘧𝘰𝘳𝘦𝘪𝘨𝘯 𝘤𝘢𝘱𝘪𝘵𝘢𝘭".
Third, in connection with the fiscal and debt position –“𝘓𝘰𝘰𝘬𝘪𝘯𝘨 𝘢𝘩𝘦𝘢𝘥, 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘵𝘩𝘦 𝘱𝘢𝘤𝘦 𝘰𝘧 𝘧𝘪𝘴𝘤𝘢𝘭 𝘤𝘰𝘯𝘴𝘰𝘭𝘪𝘥𝘢𝘵𝘪𝘰𝘯 𝘸𝘪𝘭𝘭 𝘳𝘦𝘮𝘢𝘪𝘯 𝘤𝘳𝘪𝘵𝘪𝘤𝘢𝘭 𝘵𝘰 𝘳𝘦𝘥𝘶𝘤𝘦 𝘥𝘦𝘣𝘵 𝘭𝘦𝘷𝘦𝘭𝘴 𝘵𝘰 𝘴𝘦𝘵 𝘵𝘢𝘳𝘨𝘦𝘵𝘴 𝘰𝘧 75% 𝘰𝘧 𝘎𝘋𝘗 𝘣𝘺 2030 𝘢𝘯𝘥 60% 𝘣𝘺 2035, 𝘢𝘴 𝘱𝘦𝘳 𝘵𝘩𝘦 𝘗𝘶𝘣𝘭𝘪𝘤 𝘋𝘦𝘣𝘵 𝘔𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵 𝘈𝘤𝘵. 𝘏𝘰𝘸𝘦𝘷𝘦𝘳, 𝘱𝘳𝘰𝘨𝘳𝘦𝘴𝘴 𝘪𝘴 𝘭𝘪𝘬𝘦𝘭𝘺 𝘵𝘰 𝘳𝘦𝘮𝘢𝘪𝘯 𝘨𝘳𝘢𝘥𝘶𝘢𝘭 𝘨𝘪𝘷𝘦𝘯 𝘵𝘩𝘦 𝘤𝘩𝘢𝘭𝘭𝘦𝘯𝘨𝘪𝘯𝘨 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘤 𝘦𝘯𝘷𝘪𝘳𝘰𝘯𝘮𝘦𝘯𝘵. 𝘖𝘯 𝘵𝘩𝘦 𝘦𝘹𝘱𝘦𝘯𝘥𝘪𝘵𝘶𝘳𝘦 𝘧𝘳𝘰𝘯𝘵, 𝘤𝘰𝘯𝘵𝘪𝘯𝘶𝘦𝘥 𝘥𝘪𝘴𝘤𝘪𝘱𝘭𝘪𝘯𝘦 𝘳𝘦𝘮𝘢𝘪𝘯𝘴 𝘦𝘴𝘴𝘦𝘯𝘵𝘪𝘢𝘭, 𝘯𝘰𝘵𝘢𝘣𝘭𝘺 𝘵𝘰𝘸𝘢𝘳𝘥𝘴 𝘳𝘦𝘥𝘶𝘤𝘪𝘯𝘨 𝘯𝘰𝘯-𝘱𝘳𝘰𝘥𝘶𝘤𝘵𝘪𝘷𝘦 𝘰𝘶𝘵𝘭𝘢𝘺𝘴 𝘢𝘭𝘰𝘯𝘨𝘴𝘪𝘥𝘦 𝘮𝘢𝘯𝘢𝘨𝘪𝘯𝘨 𝘴𝘵𝘢𝘵𝘦-𝘰𝘸𝘯𝘦𝘥 𝘦𝘯𝘵𝘦𝘳𝘱𝘳𝘪𝘴𝘦 𝘳𝘦𝘭𝘢𝘵𝘦𝘥 𝘤𝘰𝘯𝘵𝘪𝘯𝘨𝘦𝘯𝘵 𝘭𝘪𝘢𝘣𝘪𝘭𝘪𝘵𝘪𝘦𝘴. 𝘐𝘯 𝘵𝘩𝘪𝘴 𝘳𝘦𝘨𝘢𝘳𝘥, 𝘵𝘩𝘦 𝘳𝘦𝘤𝘦𝘯𝘵𝘭𝘺 𝘢𝘯𝘯𝘰𝘶𝘯𝘤𝘦𝘥 𝘍𝘪𝘴𝘤𝘢𝘭 𝘙𝘦𝘴𝘱𝘰𝘯𝘴𝘪𝘣𝘪𝘭𝘪𝘵𝘺 𝘭𝘦𝘨𝘪𝘴𝘭𝘢𝘵𝘪𝘰𝘯 𝘴𝘩𝘰𝘶𝘭𝘥, 𝘶𝘱𝘰𝘯 𝘦𝘯𝘵𝘳𝘺 𝘪𝘯𝘵𝘰 𝘧𝘰𝘳𝘤𝘦, 𝘩𝘦𝘭𝘱 𝘵𝘰 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩𝘦𝘯 𝘵𝘩𝘦 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 𝘧𝘰𝘳 𝘴𝘰𝘶𝘯𝘥 𝘱𝘶𝘣𝘭𝘪𝘤 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘮𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵, 𝘦𝘯𝘩𝘢𝘯𝘤𝘦 𝘢𝘤𝘤𝘰𝘶𝘯𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘢𝘯𝘥 𝘴𝘶𝘱𝘱𝘰𝘳𝘵 𝘭𝘰𝘯𝘨-𝘵𝘦𝘳𝘮 𝘧𝘪𝘴𝘤𝘢𝘭 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘪𝘭𝘪𝘵𝘺. 𝘊𝘰𝘯𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺, 𝘪𝘵 𝘪𝘴 𝘤𝘳𝘶𝘤𝘪𝘢𝘭 𝘵𝘰 𝘶𝘱𝘭𝘪𝘧𝘵 𝘵𝘩𝘦 𝘤𝘰𝘶𝘯𝘵𝘳𝘺’𝘴 𝘨𝘳𝘰𝘸𝘵𝘩 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘵𝘰 𝘤𝘳𝘦𝘥𝘪𝘣𝘭𝘺 𝘦𝘯𝘩𝘢𝘯𝘤𝘦 𝘳𝘦𝘷𝘦𝘯𝘶𝘦 𝘨𝘦𝘯𝘦𝘳𝘢𝘵𝘪𝘰𝘯. 𝘚𝘶𝘣𝘴𝘦𝘲𝘶𝘦𝘯𝘵𝘭𝘺, 𝘵𝘩𝘪𝘴 𝘴𝘩𝘰𝘶𝘭𝘥 𝘦𝘯𝘢𝘣𝘭𝘦 𝘵𝘩𝘦 𝘤𝘰𝘶𝘯𝘵𝘳𝘺 𝘱𝘳𝘦𝘴𝘦𝘳𝘷𝘦 𝘵𝘩𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵-𝘨𝘳𝘢𝘥𝘦 𝘴𝘵𝘢𝘵𝘶𝘴 𝘰𝘧 𝘪𝘵𝘴 𝘤𝘳𝘦𝘥𝘪𝘵 𝘱𝘳𝘰𝘧𝘪𝘭𝘦, 𝘱𝘳𝘰𝘷𝘪𝘥𝘪𝘯𝘨 𝘢𝘯 𝘪𝘮𝘱𝘰𝘳𝘵𝘢𝘯𝘵 𝘢𝘯𝘤𝘩𝘰𝘳 𝘧𝘰𝘳 𝘪𝘯𝘷𝘦 𝘵𝘰𝘳 𝘤𝘰𝘯𝘧𝘪𝘥𝘦𝘯𝘤𝘦 𝘢𝘯𝘥 𝘴𝘶𝘱𝘱𝘰𝘳𝘵𝘪𝘯𝘨 𝘔𝘢𝘶𝘳𝘪𝘵𝘪𝘶𝘴’ 𝘢𝘮𝘣𝘪𝘵𝘪𝘰𝘯𝘴 𝘵𝘰 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩𝘦𝘯 𝘪𝘵𝘴 𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘢𝘴 𝘢𝘯 𝘪𝘯𝘵𝘦𝘳𝘯𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘤𝘦𝘯𝘵𝘳𝘦 𝘧𝘰𝘳 𝘈𝘧𝘳𝘪𝘤𝘢”.
MCB is evidently still concerned about the likelihood of a Moody’s downgrade, but is expressing its apprehensions tactfully.In the not too distant past, MCB Focus made a forceful statement on the need for fiscal consolidation which enraged Minister Pada, and its editor got shown the door. The MCB Report still dares to suggest that the fiscal adjustment effort may stabilise the public debt ratio, but is not sufficiently strong to reduce it! You never know, being too critical can end up at the CCID !
