The International Monetary Fund published the concluding statement for its 2026 Article IV consultation mission to Mauritius, assessing the economy as resilient but facing weaker momentum and higher external risks. Real GDP growth was reported at 3.2 percent in 2025 and is projected to slow to 2.8 percent in 2026, mainly because spillovers from the war in the Middle East are expected to weigh on tourism. The IMF said policy discussions focused on the shock’s impact on Mauritius, the policy response, rebuilding fiscal space, strengthening the monetary policy framework, maintaining financial stability, and advancing structural reforms. The statement said inflation rose in 2025, eased in early 2026 within the Bank of Mauritius target range of 2 to 5 percent, and is expected to increase again in 2026 due to higher international fuel and food prices before moderating through 2027. The external current account deficit is estimated to have widened in 2025, while foreign reserves rose to USD 10.3 billion at end-2025. The IMF projected the primary fiscal deficit excluding grants to narrow to 3.5 percent of GDP in FY2025/26 from 6.5 percent in FY2024/25, largely on higher revenue including the Fair Share Contribution, but said public debt would remain high at about 88 percent of GDP at end-June 2026. It called for stronger revenue mobilization, restraint in current spending including pensions and extra-budgetary transfers, and better targeted support for vulnerable groups. On monetary policy, it said the stance has been broadly appropriate but the framework should be strengthened, the Bank of Mauritius’ independence safeguarded through prompt amendments to the BOM Act, and the central bank should be ready to tighten if inflation expectations move above target. The IMF also welcomed the return of undisbursed Mauritius Investment Corporation funds to the BOM and plans to gradually phase out the BOM’s remaining investment in MIC, while noting continued monitoring needs around cross-border activity, real estate exposures, governance, AML/CFT effectiveness, and climate and competitiveness reforms.
International Monetary Fund 2026-05-04
International Monetary Fund concludes Mauritius Article IV mission with 2026 growth seen at 2.8 percent and calls to rebuild fiscal space
The International Monetary Fund’s concluding statement on the 2026 Article IV consultation with Mauritius finds the economy resilient but slowing, with real GDP growth projected to ease from 3.2 percent in 2025 to 2.8 percent in 2026 amid tourism spillovers from the war in the Middle East and higher external risks. Inflation is expected to rise again in 2026 on higher international fuel and food prices. The primary fiscal deficit excluding grants is projected to narrow to 3.5 percent of GDP in FY2025/26, while public debt remains high at about 88 percent of GDP. The IMF calls for stronger revenue mobilization, spending restraint, better targeted support, and a stronger monetary policy framework, including safeguarding the Bank of Mauritius’ independence through amendments to the Bank of Mauritius Act, readiness to tighten if inflation expectations exceed target, and continued monitoring of financial stability, governance, AML/CFT, climate, and competitiveness reforms.