Mauritius is an island state of about 1.26 million people (2022) located off the southeast coast of Africa and neighboring the French island of La Réunion. Mauritius is a beacon of economic success in Sub-Saharan Africa, having evolved from a low-income, sugarcane-dependent nation in the 1960s to an upper-middle-income country with a per capita income surpassing $10,000. This remarkable transformation was rooted in a stable democracy and a relatively diversified economy that now includes tourism, manufacturing, fisheries, ICT, and financial services, the latter contributing 14% of GDP. The country's proactive approach to education and infrastructure, as well as its openness to foreign investment, have fostered growth in various sectors, including a burgeoning pharmaceutical industry post-COVID-19. Despite the setback caused by the pandemic, which saw Mauritius’s economy contract sharply and lose its high-income status, the government's robust support program and structural reforms have set the stage for a resilient recovery.
Political Context
Mauritius is one of the oldest democracies in Africa, having held 13 general elections deemed free and fair since the late 1960s. Its political system is dominated by three parties, namely the Militant Socialist Movement (MSM), the Labour Party, and the Mauritian Militant Movement (MMM). The 13th general election took place in November 2024. A coalition named Alliance du Changement, which was mainly comprised of the Labour Party and MMM, won 60 out of 62 seats in the National Assembly. Dr. Navin Ramgoolam was sworn in as Prime Minister as well as to the roles of Finance Minister, Minister of Defense, Home Affairs and External Communications, and Minister of Rodrigues and Outer Islands Development. In Mauritius, the President is the head of state, while the Prime Minister has full executive powers and heads the government.
Civil liberties. Mauritius is rated “Free” in the 2024 Freedom House's annual study of political rights and civil liberties worldwide. It performs well on various other political and economic indicators compared to many countries in the region. It is also well placed in the Corruption Perceptions Index, ranked 56 out of 180 countries.
Economic Developments and Forecast
Mauritius has experienced remarkable growth since independence in 1968, briefly reaching high-income country status in 2020. However, the global COVID-19 pandemic hit its economy hard. Despite a successful handling of the public health emergency, the pandemic’s economic impact was severe, and the country’s Gross Domestic Product (GDP) contracted by 14.6% in 2020, causing Mauritius to slide down to upper-middle-income country status. With a gross domestic product of $10,216 per capita (2022), Mauritius’s economy has proven resilient to other global economic shocks, including those stemming from the war in Ukraine which have affected revenues from tourism arrivals. Real GDP growth rebounded by a relatively modest 3.5% in 2021 and accelerated to 8.7% in 2022, supported by a strong recovery in tourism, then reached 5.6% in 2023. The twelve-month average headline inflation moderated to 3.6% in December 2024, substantially slower than the 7% rate observed a year before, mainly due to lower global commodity prices. Because of the large COVID-19 measures and continued fiscal expansion, the public debt-to-GDP ratio stood at about 87%. A gradual fiscal consolidation is needed to improve the fiscal outlook and avoid a downgrade in sovereign credit risk rating. Growth is expected to moderate to around 3.9% in 2025, reflecting a gradual softening of public spending and export challenges.
The government has introduced measures to lessen labor and skills shortages and continues to promote the use of renewable energy. Strengthening resilience against climate and energy shocks and building fiscal buffers will be essential to build growth resilience. Investing in human capital and boosting private sector innovation will be crucial to regain and sustain high-income country status.
Last Updated: Apr 08, 2025
