Economy of Mauritius

Economy - overview

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 remarkable achievement has been reflected in more equitable income distribution, 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).



Macroeconomic Statistics

Household income or consumption by percentage share:

lowest 10%: NA

highest 10%: NA

Distribution of family income - Gini index: 37 (1987 est.)

Agriculture - products: sugarcane, tea, corn, potatoes, bananas, pulses; cattle, goats; fish

Industrial production growth rate: 8% (2000 est.)

Electricity - production: 1,836 GWh (2002)

Electricity - consumption: 1,707 GWh (2002)

Oil - consumption: 21,000 bbl/day (2003 est.)
21,000 bbl/day (2001 est.)

Current account balance: $151 million (2005 est.)
$284.1 million (2004 est.)

Reserves of foreign exchange and gold: $1.676 billion (2004 est.)
$1.605 billion (2005 est.)

Exchange rates: Mauritian rupees per US dollar - 32.86 (2006),29.14 (2005), 27.499 (2004), 27.902 (2003), 29.962 (2002), 29.129 (2001)

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..ich habe mir angewöhnt, dass ich jeden Tag in den Garten schau und eine Blume hinrichte..." (Edmund Stoiber, Bayrischer Ministerpräsident)

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Economy

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 of the order of 5% to 6%. This has been reflected in increased life expectancy, lowered infant mortality and a much improved infrastructure.

Estimated at $16.28 billion for 2005, Mauritius has the 2nd highest GDP per capita in Africa. It is only exceeded by Equatorial Guinea, which derives most of its revenue from oil exports. Mauritius has a mature economy with a great deal of wealth distribution among its citizens[citation needed]. The economy is mainly dependent on sugarcane plantations, tourism, textiles, and services, but other sectors are rapidly developing as well.

Sugar cane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings. However, a record-setting drought severely damaged the sugar crop in 1999. The government's development strategy centres on foreign investment. Mauritius has attracted more than 9,000 offshore entities; many aimed at commerce in India and South Africa while investment in the banking sector alone has reached over $1 billion. Economic performance during the period from 2000 through 2004 combined strong economic growth with unemployment at 7.6% in December 2004. France is the country's biggest trading partner, and has close ties with the country. They also provide technical assistance in various forms.



Financial services

Mauritius provides an environment for banks, insurance and reinsurance companies, captive insurance managers, trading companies, ship owners or managers, fund managers and professionals to conduct their international business. The economic success achieved in the 1980s engendered the rapid growth of the financial services sector in Mauritius. The following types of offshore activities can be conducted in Mauritius:

* Offshore Banking
* Offshore Insurance
* Offshore Funds Management
* International Financial Services
* Operational Headquarters
* International Consultancy Services
* Shipping and Ship Management
* Aircraft Financing and Leasing
* International Licensing and Franchising
* International Data Processing and Information Technology Services
* Offshore Pension Funds
* International Trading
* International Assets Management
* International Assets Management
* International Employment Services

On 4 April 2005 during his budget speech, Hon. Pravind Jugnauth, Deputy Prime Minister and Minister of Finance and Economic Development announced that Mauritius will become a duty-free island and that will take about four years. Duty has been decreased (and for many products completely eliminated) for more than 1850 products including clothing, food, jewelry, photographic equipment, audio visual equipment and lighting equipment.

The main motivations are (1) Attract more tourists going to Singapore and Dubai, and, (2) Give all Mauritians easier access to quality products at affordable prices.

A plan by ADB Networks calls for Mauritius to become the first nation to have coast-to-coast wireless internet access. The wireless hot spot currently covers about 60% of the island and is accessible by about 70% of its population. By the end of 2006, antennas should provide access to 90% of the island.

Its biggest trading partners are France and the UK.

Mauritius ranks first in respect of FDI inflows to India amongst all the countries with cumulative inflows amounting to US $ 10.98 billion. 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).

__________________
..ich habe mir angewöhnt, dass ich jeden Tag in den Garten schau und eine Blume hinrichte..." (Edmund Stoiber, Bayrischer Ministerpräsident)

http://www.business-podium.com