Economy
Economy
Source: CIA World Fact Book, Government of Mauritius
Economic 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. Sugarcane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings. The government’s development strategy centers on foreign investment. Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over $1 billion. Mauritius, with its strong textile sector and responsible fiscal management,was well-poised to take advantage of the Africa Growth and Opportunity Act (AGOA).
From an International Development Association (IDA) – supported monocrop economy, predominantly dependent on sugar, and caught in the Malthusian nightmare of overpopulation and massive unemployment, Mauritius has successfully diversified its economic activities by carving out special niches in textile, tourism and financial services. Over the past five years the country registered an annual average real growth rate of 5.1%, balance of payments surpluses leading to a comfortable external reserves position, and a single digit inflation on average. With a per capita income of US $ 5078 (for Jan to Oct 2004), Mauritius is now classified as a middle income country and ranks, on the basis of the recent Human Development Index for 173 countries, 67th globally, 40th among developing countries and second in Africa. Sustaining the growth momentum well into the future is a major challenge because of international pressures such as globalization and liberalization. Furthermore, reforms are required domestically to arrest fiscal decline, achieve growth in labour and total factor productivity and address the issues of pockets of poverty and an ageing population.
Statistics
GDP (purchasing power parity): $12.9 billion (2001 est.)
GDP (real growth rate): 5.2% (2001 est.)
GDP (per capita): purchasing power parity – $10,800 (2001 est.)
GDP (compostition by sector): agriculture: 6% ; industry: 33% ; services: 61%
Population below poverty line: 10% (2001 est.)
Inflation Rate: 4.2% (2001 est.)
Labour force (by occupation): construction and industry 36% ; services 24% ; agriculture and fishing 14% ; trade, restaurants and hotels 16% ; transportation and communication 7% ; finance 3%
Unemployment rate: 8.6% (2001 est.)
Currency: Mauritian Rupee (MUR)
