Macroeconomic Forecast Mauritius

Mauritius' trade deficit is showing no signs of narrowing in 2010 or 2011. The euro zone accounts for 67% of the country's exports, and we expect demand in European countries to remain weak in the medium term as European Union countries slowly unwind their poor fiscal positions. In May, import growth outpaced export growth by 13.9 percentage points, which widened the trade deficit to MUR6.306bn (US$204mn), a 41.3% change year-on-year. We forecast that Mauritius' trade deficit will reach US$1.85bn in 2010 and US$1.91bn in 2011, a 17.1% and 3.2% change year-on-year respectively.

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