Economy - Overview

Since independence in 1968, Mauritius has
developed from a low-income, agriculturally
based economy to a middle-income
diversified economy with growing
industrial, financial, and tourist sectors. For
most of the period, annual growth has been
in the order of 5% to 6%. This remarkable
achievement has been reflected in more
equitable income distribution, increased life
expectancy, lowered infant mortality, and a
much-improved infrastructure. The
economy rests on sugar, tourism, textiles
and apparel, and financial services, and is
expanding into fish processing, information
and communications technology, and
hospitality and property development.
Sugarcane is grown on about 90% of the
cultivated land area and accounts for 15%
of export earnings. The government's
development strategy centers on creating
vertical and horizontal clusters of
development in these sectors. Mauritius
has attracted more than 32,000 offshore
entities, many aimed at commerce in India,
South Africa, and China. Investment in the
banking sector alone has reached over $1
billion. Mauritius, with its strong textile
sector, has been well poised to take
advantage of the Africa Growth and
Opportunity Act (AGOA). In 2009, the drop
in global demand for Mauritian exports
caused a 4% drop in GDP.

Economy: GDP to increase to 4.3% in 2010

On the basis of information gathered on the key sectors of the economy and taking into
consideration measures announced in the last budget, GDP is expected to grow by around 4.3%
in 2010, higher than the 2.8% growth in 2009 says the Central Statistical Office in a December
2009 report.

Exclusive of sugar, the growth rate would be around 4.4% compared to 2.4% in 2009. The main
assumptions used are: sugarcane/sugar milling: sugar production of around 480,000 tonnes,
resulting in growth of 1.1% compared to 21.1% in 2009; Manufacturing Industries: to expand by
around 1.7% compared to 0.6% in 2009. a growth of 1.0% in “Textile”, assuming some recovery
in the economies of our main markets, and “Other manufacturing” to expand by 1.0%
compared to no growth in 2009: Construction: to grow at a higher rate of 8.0% as opposed to
3.0% in 2009 mainly due to the frontloading of public sector investment.