GDP growth for Mauritius could oscillate between 6.6% and 6.8%, as Mauritius further recuperates from the pandemic-induced crisis, SBM has said in its 11th issue of SBM Insights.
The bank’s analysts argued that “although notable uncertainty subsists regarding the evolution of the virus and whereas inflationary pressures would have a bearing on economic activities, the country’s recovery momentum is likely to gather additional steam this year.”
In addition to benefitting from a still low statistical base, SBM’s analysts claimed that economic growth would be “underpinned by a further improvement in household and business sentiment, which would prompt a continuing recovery in sectorial activities and investment patterns.”
On the other hand, SBM foresee headline inflation to hover around 4% as at December 2022.
“Overall, while remaining manageable, pressures on the consumer price index are – as it would be the case on the global scene – likely to subsist in 2022 on the basis of exogenous factors, but are expected to gradually dissipate during the second half of the year.”
On the Banking and Financial Sector, SBM analysts expect conditions across the banking and money markets to further improve and stabilise in the periods ahead, “as the financial bulletins of households and corporates recover and customers find themselves relatively better off to service their debts.”
“Along the way, the relative acceleration in tourist arrivals should help to boost the flow of foreign currency into local circuits.”
“Also, the impact of the future withdrawal of relief measures being deployed by the authorities on the soundness and activities of the banking sector remains to be appraised, though arrangements are, as reported, being made by the Bank of Mauritius to smoothen the process.”
