IMF Urges Mauritius To Boost Competitiveness

by Lorys Charalambous, Tax-News.com, Cyprus

11 August 2005

Whilst Mauritius has enjoyed strong growth economically over the past quarter-century, thanks in large part to the financial services industry, the country must step up its competitiveness and adapt its products in order to sustain its economic success, the International Monetary Fund stated recently.

"Mauritius has one of the oldest and most sophisticated financial systems in Africa. It is not only well capitalized, it is also highly profitable," the IMF Survey stated.

The IMF also observed that a strong regulatory framework and monetary policy aimed at maintaining macroeconomic stability has helped to bolster the soundness of the financial system.

"There is every reason to believe that the financial sector will continue to play this critical role in the Mauritius economy," said the Fund.

"All of that said, however, if the economy’s transition to new and more dynamic activities is to be facilitated, policymakers will need to redouble their efforts to maintain macroeconomic stability and an open economy, while preserving social cohesion. Markets will also need increased flexibility, particularly in the highly regulated labor market," the IMF report observed.

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