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BoM Predicts Rs 90.5 B Tourism Revenue in 2024



BoM Predicts Rs 90.5 B Tourism Revenue in 2024

Tourism revenues, which amounted to Rs 86 billion last year, are expected to grow this year, according to the forecasts of the Bank of Mauritius. Rs 90.5 billion.

This is the amount of tourist receipts expected this year, according to the Bank of Mauritius (BoM).

Harvesh Seegolam noted that last year, the tourism sector remained firmly anchored, supported by continued global demand for travel and tourism.

In addition, the appeal of the Mauritian destination remains high, especially among European countries.

“The target of 1.3 million tourist arrivals for 2023 has almost been achieved, with tourist receipts of Rs 86 billion, the highest figure ever recorded,” he said at the end of the Monetary Policy Committee meeting at the central bank premises on April 3.

In the future, the governor argues, the tourism sector is expected to maintain its momentum, continuing to benefit from strong demand for holiday travel, improved air connectivity, and ongoing efforts to diversify the tourist base.

Growth of 6.5% this year.
The national economy grew by 7.3% in the last quarter of 2023 and by 7% over the entire last year.

Several sectors, including construction and accommodation and food service activities, fueled domestic economic activity.

These sectors have particularly benefited from ongoing major infrastructure projects and the significant influx of tourists.

Growth has also been supported by resilient consumer and investment spending.

What about 2024? Harvesh Seegolam suggests that the widespread dynamism of the main economic sectors should support domestic growth again this year.

“The data we receive already indicate promising prospects for the economy.” The BoM forecasts real GDP growth of 6.5% in 2024.

Next MPC Meeting
Will the 71st Monetary Policy Committee meeting be held before the presentation of the 2024-25 budget?

Normally, it meets once a quarter.

The next meeting is expected to take place between late June and early July 2024. However, the governor emphasizes that the MPC will continue to closely monitor the economic situation and stands ready to meet between its regular meetings if necessary.

Inflation: BoM’S target range soon to be achieved.
Inflation is expected to continue its downward trend this year, according to the BoM. It is expected to be within the BoM’s target range of 2% to 5%.

Unless there is a shock, Harvesh Seegolam stated, overall inflation is expected to reach 4.9% by the end of 2024.

Several factors will influence these figures, starting with the ongoing decline in global food prices and inflation among trading partners that would impact domestic prices.

The effects of previous interest rate hikes are expected to continue to be felt in the economy, according to the Governor of the Bank of Mauritius.

It will be important to keep core inflation in check and ensure that inflation expectations remain well-anchored.

Inflation forecasts for this year are expected to follow the trend observed since the beginning of the year.

Overall inflation decreased to 6.1% in February 2024, influenced by favorable global commodity prices.

However, year-on-year inflation, which had gradually slowed throughout 2023, reversed course to reach 6.2% during the same period.

“Increased volatility in food prices, coupled with disruptions in domestic supply due to unfavorable weather conditions, have significantly contributed to the reversal in year-on-year inflation,” said Harvesh Seegolam.

The upcoming general elections are not expected to influence the operations of the Monetary Policy Committee, as Governor Seegolam stated that the central bank has always acted cautiously as an independent institution.

The goal is for the country and its citizens to benefit from price stability and financial stability.

The Monetary Policy Committee unanimously decided to keep the key rate unchanged at 4.50%, taking into account recent global economic developments and their potential impact on the national economy.

Harvesh Seegolam has been reappointed as Governor of the Bank of Mauritius for another three years, along with the first and second deputy governors, Mardayah Kona Yerukunondu and Hemlata Sadhna Sewraj-Gopal, respectively.

In terms of Economic Indicators

-Investment measured by gross fixed capital formation (GFCF) increased by 30.9% in 2023

-Foreign direct investment (FDI) amounted to Rs 35 billion

-Unemployment rate in the fourth quarter of 2023 was 6.1%

-Current account deficit was 4.5% of GDP in 2023 and is expected to decrease to 4% in 2024

-Gross official international reserves in March 2024 stood at $7.2 billion, equivalent to more than 11 months of imports

Source: Defi Media

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