Mauritius Government Anticipates Strong Economic Growth In 2006

by Lorys Charalambous, Tax-News.com, Cyprus

09 February 2006

The Mauritius government has said that it is expecting the economy to stage a strong recovery in 2006.

Citing recent data gathered on the key sectors of the economy and recent economic trends, the government revealed that it is anticipating growth of 5.1% this year, which compares with an estimated 3.0% growth rate for 2005.

When the sugar industry is factored out of the equation, the growth will fall slightly to around 5.0%.

The government has stated that it expects strong growth in the financial intermediation sector, which, it is predicted, will expand by 7% this year.

With tourist arrivals predicted to reach 825,000 in 2006 following measures taken to improve air access, the hotel and restaurant industry is also likely to receive a boost in the coming year. New hotels and Integrated Resort Scheme projects will also see the construction sector recover from a contraction in 2005, the government predicts.

However, activity in the Export Processing Zone will probably fall further in 2006 as a result of increasing competition from low-cost and high-volume textile producing countries. With an expected output of R32,000 million, the sector is forecast to decline by around 4.0%.

The wholesale and retail trade sectors are likely to grow at a reduced pace compared to 2005, in view of expected lower growth in household consumption, due to increases in the prices of consumption goods.

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