Mauritius: 2026 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Mauritius

International Monetary Fund

No 2026/178, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2026 Article IV Consultation discusses that Mauritius’ economy remains resilient, but macroeconomic conditions have weakened amid a more adverse external environment. Mauritius continues to benefit from resilient economic activity, supported by tourism and financial services, but is now operating under weaker macroeconomic conditions amid a more adverse and uncertain external environment. The outlook has softened and risks are tilted to the downside. Real GDP growth is projected to slow to 2.8 percent in 2026, reflecting adverse spillovers from the war in the Middle East before recovering gradually to around 3.2 percent over the medium term amid demographic headwinds. Inflation is projected to rise significantly in 2026, driven by higher energy prices and administered price adjustments, before moderating toward the midpoint of the Bank of Mauritius’s (BOM) target range over the medium term. The report suggests advance structural reforms to support private-sector-led growth and external competitiveness, including measures to raise labor force participation, address skills mismatches, enhance digitalization, improve the business environment, and scale-up climate-resilient infrastructure investment.

Keywords: Catastrophe Containment and Relief; fund holding; currency of Mauritius; facto exchange rate arrangement; article IV consultation; Fiscal consolidation; Monetary policy frameworks; Global; Middle East (search for similar items in EconPapers)
Pages: 90
Date: 2026-07-15
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