Macroeconomic Forecast Mauritius

November 2006 | Macroeconomic Forecasts

We now expect GDP growth to be somewhat higher this year at 4.0%, based on reasonable performances in finance, tourism, transport and communications, which should offset an expected 6% downturn in sugar production. The external accounts will remain manageable, but pressure will remain on prices and the rupee. The local currency has fallen this year and it may well be that the central bank has been intervening to stem the decline. The monetary authorities have said that their main concern regarding rupee depreciation is inflation rather than external competitiveness, and have signalled that they stand ready to raise the cost of borrowing again if needed.

If you would like to subscribe to Southern Africa Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Southern Africa Monitor please click on the trial link below.