A thought-provoking read that sheds light on the economic numbers we’ve observed over the last decade, offering a fresh perspective on the challenges ahead. Key takeaways highlighting the magnitude of the challenge: • GDP growth of +5.9% CAGR from 2014 to 2024, but a -0.3% contraction in real GDP in USD terms. • The rupee has depreciated by over 30% against the USD since 2014. • The Bank of Mauritius’ net reserves have declined by USD 1.7 billion. • The tourism sector remains below pre-COVID levels in real USD terms. • Despite an over-reliance on the real estate sector, its GVA has dropped by -3.2% from 2014-2023. • An ageing population, with 1/3 of government expenditure allocated to social protection. What can we do to address these challenges? • Boost productivity and efficiency through technology, upskilling, and innovation. • Diversify the economy by shifting from consumption and imports, to domestic production (e.g., agriculture, blue food, renewable energy) and exports (e.g., investing in our port). • Stabilize the rupee via monetary and fiscal policies, export growth, increased FDI, and enhanced tourism revenue. • Revitalize the tourism sector by diversifying beyond the traditional hotel model. • Reform the pension system for long-term sustainability, looking beyond political gains. • Mitigate brain drain through meritocracy and creating more opportunities for talent retention. The road ahead requires bold decisions, innovative thinking, and collective effort to unlock our country’s full potential.
Our team has conducted an in-depth analysis and have outlined the potential challenges faced by the New Government, which covers our economic model, currency depreciation and inflationary pressures, agriculture & food security, and public finances & demographic pressures amongst others. Click here to read more! https://lnkd.in/diAun79h #AXYS #EconomicOutlook #MarketAnalysis #GovernmentChallenges #AXYSInsights
Finance Executive at REHM Grinaker
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