02 February 2013, Bank of Mauritius
An International Monetary Fund (IMF) mission visited Mauritius during January 16–30, 2013 to conduct the 2013 Article IV consultation. The mission’s work focused on the fiscal and monetary policy mix for 2013 and the prospects of the Mauritian economy over the medium term. The mission emphasized the need to reduce external imbalances through fiscal consolidation and structural reforms and to remove infrastructure constraints. At the conclusion of the visit, the mission issued a press release on the IMF website.
The mission noted that “prudent macroeconomic policies continued in 2012, resulting in good fiscal and inflation outcomes…Growth in the real gross domestic product in 2013 will increase to 3.7 per cent, fuelled by strong growth in fishery, information & communications technology and financial services…At around 4 per cent, inflation is low at the moment, but inflationary pressures could emerge in 2013 from wage pressures in the private sector linked to the decision to increase public sector wages and from possible adjustments in some administered prices. Headline consumer price index inflation is projected to accelerate to 5.7 per cent on average in 2013.”
The mission observed that “the current monetary policy stance is broadly appropriate but the authorities should stand ready to tighten monetary conditions if inflation accelerates. The developments in the real estate sector should continue to be monitored carefully, both in terms of price and rental growth and with respect to the impact on the banking sector. Overall, the banking sector appears robust, and the financial system has proven resilient.”
The Press Release No.13/28 is available at http://www.imf.org/external/np/sec/pr/2013/pr1328.htm.
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