Pre-budget analysis 2018

The forthcoming budget speech by the Finance Minister on 14 June 2018 will be taking place in a context of heightened uncertainty on the global front, marked by political turmoil in Italy, an unresolved US-North Korea summit, tense US-China trade relations, an OPEC meeting on 22 June 2018 amid accrued inflationary pressures from oil prices and unsettling Brexit talks. In addition, the normalization of US interest rate leads to expectations of a stronger US dollar and raises the risk of capital outflows from emerging countries. Mauritius, an open economy, is vulnerable to adverse developments at international level and therefore has to design macroeconomic policies taking into account such potential headwinds.

The Mauritian authorities have admittedly initiated potentially transformational public sector infrastructure projects that may crowd in private investment, raise productivity and efficiency at national level. Efforts to promote Mauritius as a regional Fin Tech hub and to develop the Ocean Economy are highly commendable.