Mauritius Economic Outlook

• The real Gross Domestic Product (GDP) growth rate is expected to remain moderate in 2012 and 2013.
• A debt management strategy is being finalised to bring the public debt down to 50% by 2018.
• The country remains a top tier performer in social and human capital development but finding and keeping employment remain a challenge.

While macroeconomic performance has been reasonably strong, uncertainties in the global economic environment continue to threaten economic recovery. Anchored  by a series of countercyclical policy measures the country achieved moderate real GDP growth in 2011, supported by recovery in the tourism sector and strong performances in the financial services, transport and communications, and fisheries sectors. Prospects for a rebound in 2012 remain weak as external demand contracts, with forecasts showing a further decline in growth. In 2012 and 2013, inflation is projected to fall back to low single figures. The Mauritian government has taken steps to deepen the domestic debt market and improve capacity for its management. In this context a debt management strategy is being finalised and the public debt management unit is being reorganised. In 2012 domestic debt is projected at 54.1% of GDP. The target for the government is to bring it down to 50% by 2018.

Youth unemployment remains a challenge in Mauritius. Major problems include finding and keeping jobs. Although the youth unemployment rate fell to 21.9% in 2011 from 22.5% in 2010, it is almost three times higher than the national rate of 7.9%. At  26%, female unemployment is disproportionately higher among the unemployed young, compared to 19.2% for men. The National Human Resource Development Plan provides the policy framework for education, training programmes and career development to meet the skill demands of employers and reduce the mismatch between demand and  supply of manpower.