Mauritius Business Forecast Report Q4 2012

Mauritius Business Forecast Report Q4 2012 - new country guide report published
2013-01-01 01:03:53 - Mauritius Business Forecast Report Q4 2012 - a new country guide report on

We expect real GDP growth in Mauritius to come in at a relatively constrained 3.4% in 2012 and 4.2% in 2013. The dim economic growth prospects for key trading partners, and the eurozone in particular, will see demand for Mauritian goods and services remain subdued over the short- to medium-term. Investment, both private and public, will be a key pillar



of growth for the economy as well as supporting the overall balance of payments position. Mauritius´s attractive business environment and reputation for stability will continue to attract robust FDI flows.

Major Forecast Changes

We have made slight downward adjustments to our GDP growth outlook for Mauritius in 2012 and 2013, based on the deteriorating external environment and weak growth prospects among Mauritius´s key trading partners. We now forecast growth of 3.4% in 2012 and 4.2% in 2013, compared with previous projections of 3.8% and 4.3%.

Key Risks To Outlook

Given its high exposure to global markets and Europe in particular, the outlook for Mauritius is inextricably tied to the economic health of its key trade partners. While our Europe team still expect the single currency bloc to ´muddle through´, they believe that the risks of a break-up have substantially increased. Any greater than anticipated deterioration within the eurozone would pose significant downside risks to our forecasts.

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Mike King
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