3 Key Insights: Moody’s Sees Growth in Mauritius Economy

In a reassuring statement released late on July 26, 2024, the credit rating agency Moody’s provided an optimistic assessment of Mauritius’ economic performance and political stability, positioning the island nation as a prominent international financial center.

The report noted that “Mauritius’ economy has experienced a very high growth rate since 2022,” underscoring the country’s robust economic recovery following the impacts of the COVID-19 pandemic.

Titled “Strength of Institutions and Governance Highlighted by Demonstrated Resilience to External Shocks,” the report reflected on the successful measures taken by the Mauritian authorities to navigate through the crisis.

Moody’s pointed to the ongoing fiscal consolidation efforts, suggesting that a further acceleration in reducing the debt-to-GDP ratio could potentially lead to an upgrade in the country’s credit rating.

Moody’s praised the government’s initiatives aimed at improving the fiscal landscape, particularly the introduction of the Climate Corporate Responsibility Levy.

The agency stated, “The government has demonstrated its commitment to fiscal consolidation through the introduction of new revenue measures, which support debt affordability and finance higher spending in priority areas like pensions and investment in renewable energy.”

The report specifically highlighted the introduction of a 2% Corporate Climate Responsibility Levy in the fiscal year 2025 budget as a recent measure to enhance the country’s revenue base.

While the outlook remained positive, Moody’s emphasized the need for continued efforts in fiscal management to achieve further improvements in credit standing.

Source: l’Express