The International Monetary Fund (IMF) Executive Board has completed its Article IV Consultation with Mauritius, as announced on June 18, 2025. The assessment indicates that the Mauritian economy remains resilient, with a real GDP growth of 4.7 percent in 2024, down from 5.0 percent in 2023. This growth was largely driven by the services, construction, and tourism sectors.
Headline inflation decreased to 2.5 percent in March 2025 from 7.0 percent in 2023 due to easing international food and energy prices and reduced fuel excise duties. However, the external current account deficit widened to 6.5 percent of GDP in 2024 because of higher imports and freight costs. Gross foreign reserves rose to $8.5 billion by the end of 2024, covering nearly twelve months of imports.
Looking forward, Mauritius faces several challenges including high public debt and significant public investment needs alongside low productivity and an ageing population. Real GDP growth is projected to slow to 3.0 percent in 2025 due to weakening external demand, a decline in tourism activity, and drought conditions.
"The economy has recovered solidly from the pandemic," noted the IMF Executive Board while acknowledging fiscal and structural challenges remain due to high public debt and demographic issues.
Inflation is expected to average at around 3.6 percent in 2025 within the Bank of Mauritius' target range over the medium term. The primary fiscal deficit for FY24/25 is projected at approximately 6.5 percent of GDP due mainly to increased compensation for employees and social benefits.
The IMF recommends that fiscal policy should focus on "frontloaded growth-friendly consolidation" to enhance fiscal credibility while protecting vulnerable groups through increased tax revenue and controlled spending on essential services funds (ESFs). Reforming the pension system is also crucial given Mauritius’ ageing population.
The IMF suggests that "BOM should start gradually phasing out its ownership of MIC" while strengthening monetary policy implementation by resuming uncapped issuance of BOM bills at key policy rates.
Mauritius' external position at end-2024 was assessed as weaker than desirable levels necessitating structural reforms for better competitiveness externally. Continued progress on strengthening anti-money laundering frameworks is encouraged along with close monitoring of financial sector risks especially concerning real estate.
To ensure long-term private sector-led growth, advancing structural reforms focusing on boosting investment and innovation are essential according to the IMF's recommendations which include enhancing worker skills through improved education systems alongside narrowing gender gaps.