Mauritius: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Mauritius

The 2024 Article IV Consultation discusses that Mauritius has rebounded strongly from the pandemic on the back of buoyant tourism, social housing construction, and financial services. The outlook for growth remains favorable, headline inflation is projected to ease further, and public debt is projected to continue moderating over the medium term. Risks to the outlook are on the downside, including from deterioration in global growth, higher-than-anticipated fuel and food prices, and extreme climate events. The macroeconomic policy mix should be recalibrated to rebuild fiscal and external buffers and maintain financial stability. Achieving high-income status will require continued structural reforms to promote competitiveness and economic diversification. Advance structural reforms, including those that bolster skills in the domestic labor market and support female labor force participation, foster digitalization, and enhance climate-resilient infrastructure investment. It is imperative to strengthen the effectiveness of the new monetary policy framework and stand ready to tighten the monetary policy stance should inflationary pressures re-emerge.