Tuesday, December 3, 2013

Economy of Mauritius

The economy of Mauritius refers to the economic activity of the island nation of Mauritius.
Port Louis, Mauritius.jpg
The Capital Port Louis
CurrencyMauritian rupee (MUR)
Fiscal year1 July - 30 June
GDP$19.30 billion (PPP)(2012)
GDP growth3.3% (2012)
GDP per capita$15,595 (PPP)(2012)
GDP by sectoragriculture (4.4%), industry (23.8%), services (71.8%)(2011 estimate)
Inflation (CPI)6.7% (2011 estimate)
below poverty line
8% (2006 estimate)
Labour force607,400 (2011 estimate)
Labour force
by occupation
agriculture and fishing (9%), construction and industry (30%), transportation and communication (7%), trade, restaurants, hotels (26%), finance (6%), other services (25%) (2007)
Unemployment7.9% (2012 estimate)
Main industriesfood processing (largely sugar milling), textiles, clothing, chemicals, metal products, transport equipment, nonelectrical machinery, tourism
Ease of doing business rank19th[1]
Exports$2.707 billion f.o.b. (2011 estimate)
Export goodsclothing and textiles, sugar, cut flowers, molasses
Main export partners United Kingdom 18.7%
 France 16.4%
 United States 10.4%
 South Africa 9.7%
 Spain 7.6%
 Italy 7.1%
 Madagascar 6.7% (2012 est.)[2]
Imports$5.111 billion (2012 estimate)
Import goodsmanufactured goods, capital equipment, foodstuffs, petroleum products, chemicals.
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 compares very favourably with other sub-Saharan African countries and is largely due to sustained progress in economic conditions; between 1977 and 2008, growth averaged 4.6% compared with a 2.9% average in sub-Saharan Africa. Also important is that it has achieved what few fast growing economies achieve, a more equitable income distribution and inequality (as measured by the Gini coefficient) fell from 45.7 to 38.9 between 1980 and 2006.[4] This remarkable achievement has been reflected in 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 expanding local financial institutions and building a domestic information telecommunications industry. 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, has been well poised to take advantage of the Africa Growth and Opportunity Act (AGOA).
Mauritius has attracted US$10.98 billion in Foreign direct investment inflows. Top sectors attracting FDI inflows from Mauritius (from January 2000 to December, 2005) are electrical equipment, telecommunications, fuels, cement & gypsum products and services sector (financial & non-financial).
With a well-developed legal and commercial infrastructure and a tradition of entrepreneurship and representative government, Mauritius is one of the developing world’s most successful democracies. The economy has shown a considerable degree of resilience, and an environment already conducive to dynamic entrepreneurial activity has moved further toward economic freedom. The island’s institutional advantages are noticeable. A transparent and well-defined investment code and legal system have made the foreign investment climate in Mauritius one of the best in the region. Taxation is competitive and efficient. The economy is increasingly diversified, with significant private-sector activity in sugar, tourism, economic processing zones, and financial services, particularly in offshore enterprises. The government is trying to modernize the sugar and textile industries, which in the past were overly dependent on trade preferences, while promoting diversification into such areas as information and communications technology, financial and business services, seafood processing and exports, and free trade zones. Agriculture and industry have become less important to the economy, and services, especially tourism, accounted for over 72 percent of GDP. The government still owns utilities and controls imports of rice, flour, petroleum products, and cement.