The growth momentum in Mauritius is encouraging. Since borders were opened in October 2021 and the successful rollout of national vaccination campaigns, all major economic sectors have confidently rebounded, with tourism as the trailblazer. Consumption is picking up and looks set to remain robust in the foreseeable future. Investment has been given much fillip with major infrastructure-based projects.
The reprisal in global economic activities as well as new opportunities that Mauritius has tapped into in the form of Free Trade Partnership agreements with a number of countries bodes well for the manufacturing and, more broadly, for the exports sector at large. Ongoing efforts at reducing the country’s dependence on easily-substitutable imported commodities will help strengthen the industrialization process and provide much needed impetus to growth. The economy is rapidly converging towards its pre-pandemic levels and the output gap is rapidly closing, as evidenced by the decline in cyclical unemployment in 2021.