Page 6 - June 2017

as inflation rate rose above its 2 per cent target. The Pound sterling traded at an average of
US$1.2799 in June 2017 compared to US$1.2919 in May 2017.

In June 2017, major equity markets lost some ground on profit-taking and geo-political
considerations. The NASDAQ fell by 0.9 per cent, while the Dow Jones increased by 1.6 per cent.
Among the main European market indices, CAC40, FTSE and DAX lost 3.1 per cent, 2.8 per cent and
2.3 per cent, respectively. Among emerging markets, the Shanghai Exchange Composite and Hang
Seng gained 2.4 per cent and 0.4 per cent, respectively, while the JALSH and Bombay SENSEX shed
3.6 per cent and 0.7 per cent, respectively. The MSCI Developed Markets Index, MSCI Emerging
Markets Index, and MSCI Global Equity Index edged up by 1.8 per cent, 0.5 per cent and 0.3 per
cent, respectively.

Global commodity prices moved differently in June 2017, with oil prices declining and food
prices rising. ICE Brent Crude averaged US$47.6 a barrel in June 2017, down from US$51.4 a barrel
in May 2017; while NYMEX WTI (West Texas Intermediate crude oil) averaged US$45.2 compared
to US$48.6. The Food and Agriculture Organisation's (FAO) Food Price Index (FFPI) went up by 1.4
per cent, from 172.7 points in May 2017 to 175.2 points in June 2017, and gained 7 per cent
compared to its June 2016 level. The increase in the FFPI was driven by price increases in dairy
products, cereals and meat, which partly offset the decline in sugar and vegetable oil prices.

Domestic developments

In June 2017, Statistics Mauritius revised down the growth rate of the economy (gross value
added at basic prices) for 2017 to 3.7 per cent, from 3.8 per cent estimated in March 2017.
This revision stemmed from the lower growth forecast for the ‘Agriculture’ and ‘Manufacturing’
sectors. However, domestic activity is expected to remain supported by the services sectors,
notably, ‘Information and communication’, ‘Financial and insurance activities’ and ‘Wholesale and
retail trade’. The ‘Construction’ sector is projected to register a significant rebound, while the
‘Accommodation and food service activities’ sector is forecast to grow by a relatively lower rate
mainly due to base effects arising from a high growth rate recorded in 2016. Higher tourist arrivals
of around 1,350,000 are projected for 2017 compared to 1,275,227 in 2016. On the expenditure

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