Mauritius minister sees 2008 growth at 6.0 per cent
Mauritius expects its economy to grow 6.0 per cent this year from 5.6 per cent in 2007, the Indian Ocean nation's finance minister said on Saturday.
By PTI |
PORT LOUIS: Mauritius expects its economy to grow 6.0 per cent this year from 5.6 per cent in 2007, the Indian Ocean nation's finance minister said on Saturday.
"We had 5 per cent in 2006, we had 5.6 per cent in 2007, and we can keep the growth rate at 6.0 per cent in the coming year," Finance Minister Rama Sithanen told the media.
"There are five sectors which could do exceptionally well; tourism, construction, the manufacturing free zone, financial services and professional services."
Facing the end of trade preferences and increasing global competition in its sugar and textile sectors, Mauritius began reforms in 2006 to diversify and open its $7 billion economy.
Since then, it has been ranked by groups including the World Bank as Africa's top country for economic freedom, ease of doing business and good governance.
Sithanen said he hoped Mauritius would stay on target for a budget deficit of 3.8 per cent this financial year, down from 4.3 per cent the year before.
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But he said he did not know whether public debt would continue its downward path from 70 per cent of GDP in June 2005 to 60 per cent in June 2007. "Next year we will have a PRB," he said, referring to the Pay Research Bureau, which plans civil service salary increases every five years that might require more borrowing.
"Usually it is a sizeable injection in the economy." Sithanen said the economy's strength was reflected in the stock exchange and the appreciating Mauritius rupee.
Last year, the indices on Mauritius' main stock exchange grew between 53 and 81 per cent, while the rupee appreciated 15 per cent against the US dollar.
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But with rising world prices for food and oil, last year's 8.8 per cent inflation and 8.8 per cent unemployment has made life harder for many Mauritians. "The best antidote to fight poverty is to create a conducive environment for sustained economic growth, we've done that," Sithanen said.
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