In a recent report, Statistics Mauritius presented its annual assessment of the national accounts, providing an optimistic outlook for the local economy. Here are the key points from the report.
Robust economic growth
The report predicts a strong gross domestic product (GDP) growth of 7.1% for 2023, an improvement from the previous forecast of 6.8%. This estimate is based on policy measures outlined in the 2023/2024 Budget Speech. Various sectors contribute to this growth, with tourism leading by contributing 2.0 percentage points to gross value added (GVA) at basic prices, followed by the construction sector (1.5%), the financial sector (0.7%), and the transport sector (0.5%).
Tourism boom
Despite a slight decline in local sugar production, the Mauritian economy is expected to rebound due to growth in key sectors. Agriculture is expanding significantly (11.8% growth), signaling diversification beyond sugar production. The construction sector is poised for impressive growth (28.6%), driven by both public and private sector projects. Positive prospects are also seen in wholesale and retail trade (3.6%), transport and warehousing (9.1%), and the accommodation and catering sector, which is forecasted to grow by 31.0%, highlighting the crucial role of tourism in the economic recovery.
Consumption, savings and investment
Statistics Mauritius figures reveal interesting trends in spending habits and investments. While the growth in final consumption by households and the government is slowing to 1.8% in 2023 (compared to 3.9% in 2022), investment measured by Gross Fixed Capital Formation (GFCF) is showing significant growth of 21.2% in 2023, a notable acceleration from the 7.8% increase in 2022. Excluding aircraft and pleasure boats, this growth reaches 20.7%, a substantial increase from the 7.2% in the previous year.
Additionally, private sector investment is expected to expand by 16.2% in 2023, surpassing the 9.6% growth recorded in 2022. Public-sector investment is set to be even more dynamic, with a remarkable 41.3% increase in the current year, far exceeding the modest 1.1% growth in 2022.
