Economy of Mauritius

Mauritius, a small island nation with a population of 1.3 million people, has one of the most successful and competitive economies in Africa. The country’s Gross Domestic Product (GDP) was $11.5 billion in 2021, while per capita GDP was $9,106. In July 2020, the World Bank classified Mauritius as a high-income country based on 2019 data; however, due to the impacts of COVID-19, Mauritius reverted to upper-middle income country status in July 2021. During the pandemic, the country experienced a 15 percent contraction in GDP, which fell from $14 billion in 2019 to $11 billion in 2020.

With a slight rebound in tourism and an island-wide vaccination campaign, GDP increased marginally to $11.1 billion in 2021, which is 20 percent below the pre-pandemic level. Tourism, manufacturing, and retail were the hardest-hit sectors during the pandemic. Real GDP growth was estimated at 3.7 percent in 2021, and the World Bank forecasted that the economy would rebound with GDP growth of 5.8 percent in 2022, and 6 percent in 2023, before decelerating to 3.9 percent in 2024, in a global context of low growth, high inflation, and heightened geopolitical tensions.

The most important sectors of the Mauritian economy are textiles, tourism, financial and business services, information and communication technology, seafood processing, real estate development, energy, and education/training. Mauritius claims an exclusive economic zone (EEZ) of 2.3 million square kilometers, but its undisputed EEZ amounts to approximately 1.3 million square kilometers, in addition to jointly managing about 388,000 square kilometers of continental shelf with Seychelles. The Mauritian government aspires for the ocean economy to play a significant role in the country’s economic development and provides incentives for investment in new sectors such as aquaculture, maritime services, marine biotechnology, and oil and gas exploration, besides measures to consolidate traditional activities such as coastal tourism, fishing, seafood processing, and seaport activities.

The Mauritian government has also announced plans to promote investments in the pharmaceutical and biotechnology industries, renewable energy, and information and communication technology. Mauritius targets sourcing 60% of its electricity from renewable sources by 2030, from a current 23.9%, and governmental strategies to further this objective include the implementation of utility scale renewable energy projects, facilitating the integration of renewable energies in new real estate projects, and promoting innovative energy projects.