Trade Deficit Increases by 35% in 1 Year

In October 2024, Mauritius recorded a trade deficit of Rs 18.9 billion, nearly identical to the previous month’s figure of Rs 18.8 billion. This deficit represents a significant increase of 35% compared to September 2023, when the trade gap was approximately Rs 14 billion.

The persistent trade deficit is primarily attributed to the country’s rising import levels, which continue to outpace exports.

However, there was a slight increase in export value in October 2024, amounting to Rs 5.4 billion compared to Rs 5.1 billion in September.

In contrast, imports saw a marginal decline, decreasing to Rs 28.4 billion in October from Rs 28.7 billion in September.

A closer examination of the data reveals that domestic exports accounted for Rs 5.4 billion of the total exports, which included Rs 2.2 billion from the sale of fuel for ships and other bunkering activities, alongside Rs 1.8 billion from re-exports.

Notably, the surge in imports was driven by the purchase of petroleum products, food items, and the importation of vehicles and transport equipment, which collectively comprised nearly 60% of the total import value for the month.

As expected, South Africa remains Mauritius’s main trading partner, exporting goods worth Rs 878 million in October.

This is followed by the United Kingdom with Rs 852 million, Madagascar with Rs 817 million, France with Rs 706 million, and the United States with Rs 622 million, among others.

On the import side, China ranked as the top supplier, providing goods valued at Rs 5.1 billion for the same period.

South Africa followed in second place with Rs 2.9 billion, while India stands at Rs 2.1 billion, the United Arab Emirates at Rs 1.8 billion, and France at Rs 1.5 billion.

Overall, these figures is highlighting ongoing challenges in balancing the trade deficit, emphasizing the need for policy adjustments to enhance export performance and reduce reliance on imports.

Source: l’Express