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PURSUING OURTRANSFORMATIVE JOURNEY

SUPPLEMENT TO THE BUDGET

2018-2019

BUDGET SUPPLEMENT | 2018-2019 1


SUPPLEMENT TO THE BUDGET

2018/2019

4 BUDGET SUPPLEMENT | 2018-2019

BUDGET SUPPLEMENT | 2018-2019 5 5

Purpose To supplement the Budget 2018-2019 with a review and outlook of the economy in greater detail.

Outline The supplement is structured into four parts:

1. The Global Economic Performance with respect to output, investment flows and global trade

2. Review of the Mauritian Economy: Highlights

3. Economic Review and Outlook: Macroeconomy

4. Economic Review and Outlook: Sectoral

All data, unless otherwise specified, are official data from Statistics Mauritius and

Bank of Mauritius.

Data coverage


Contents


REVIEW OF THE MAURITIAN ECONOMY: HIGHLIGHTS

MACROECONOMIC PERFORMANCE

SECTORAL PERFORMANCE

REVIEW OF THE GLOBAL ECONOMY

GLOBAL GDP GROWTH

GLOBAL TRADE

GLOBAL FOREIGN DIRECT INVESTMENT

MAURITIUS AND THE GLOBAL ECONOMY

MAURITIUS ECONOMIC GROWTH AND WORLD TRADE

06

ECONOMIC REVIEW AND OUTLOOK: MACROECONOMY

MACROECONOMIC PERFORMANCEMAURITIUS GDP GROWTH

EMPLOYMENT/UNEMPLOYMENT

YOUTH UNEMPLOYMENT

PRODUCTIVITY

CONSUMPTION EXPENDITURE

NATIONAL SAVINGS

INVESTMENT

FOREIGN DIRECT INVESTMENT INFLOWS

FOREIGN DIRECT INVESTMENT OUTFLOWS

EXTERNAL TRADE & BALANCE OF PAYMENT

FOREIGN CURRENCY RESERVES

INFLATION

EXCHANGE RATE

EXCESS LIQUIDITY

GOVERNMENT REVENUEGOVERNMENT EXPENDITURE

EXPENDITURE BY SECTOR

FISCAL BALANCES

PUBLIC SECTOR DEBTSTRUCTURE OF GOVERNMENT DEBT PORTFOLIO

CURRENCY COMPOSITION OF EXTERNAL DEBTDEBT AFFORDABILITYMATURITY STRUCTUREINTEREST RATE RISKEXTERNAL DEBT SERVICE RATIO

14

ECONOMIC REVIEW AND OUTLOOK: SECTORAL

SECTORAL PERFORMANCE

TRADITIONAL SECTORSAGRICULTURE, FORESTRY AND FISHING

THE SUGAR-CANE SUB-SECTOR

EMPLOYMENT

NON-SUGAR AGRICULTURAL SECTORTEA PRODUCTION

FOOD CROPS

FISH PRODUCTION

LIVESTOCK

MILK AND CHEESE

EMPLOYMENT

MANUFACTURINGSUGAR MANUFACTURING

FOOD PROCESSING

TEXTILE

OTHER MANUFACTURING

TOURISMTOURIST ARRIVALS

TOURISM EARNINGS

EMPLOYMENT

TOURIST ACCOMMODATION

MODE OF TRANSPORT

GOLF COURSES

CONSTRUCTION

FINANCIAL SERVICESGLOBAL BUSINESS

INVESTMENT

ICT

EMERGING SECTORSREAL ESTATE

IRS/RES/HIS/PDS

KNOWLEDGE CENTRE OF EXCELLENCE

MEDICAL HUB

RENEWABLE ENERGY

CREATIVE INDUSTRY

BLUE ECONOMY

SEAFOOD

SEAPORT

24

09

0607

07

10

14

15

16

17

24

14

15

161617

181818191920212122222223232323

25

272728282829293031323333343435363637373840414243454546474849

5253

50

53

07

07

13

26

8 BUDGET SUPPLEMENT | 2018-2019 6

Review of the Global Economy

Global GDP Growth

According to the World Economic Outlook published in April 2018 by the IMF, the global economic upswing that began around mid-2016 has become broader and stronger. With financial conditions still supportive and expectations of a sizeable fiscal expansion in the United States, global growth is expected to strengthen in 2018 and 2019.

The downside risks are possible sharp tightening of financial conditions, waning popular support for global economic integration, geopolitical strains, growing trade tensions and risks of a shift toward protectionist policies.

Global GDP growth is estimated to have picked up from 3.2 percent in 2016 to 3.8 percent in 2017, the fastest rate since 2011. It is expected to rise to 3.9 percent in both 2018 and 2019.

In advanced economies, growth in 2017 is estimated to have rebounded to 2.3 percent from 1.7 percent in 2016, explained almost entirely by a significant surge in investment. In 2018, these economies are expected to grow at a higher rate of 2.5 percent. Faster growth in the US and Euro area, particularly in France, will drive this output acceleration.

Growth in Emerging Market and Developing Countries is estimated to have increased from 4.4 percent in 2016

to 4.8 percent in 2017. It is expected to rise further to 4.9 percent in 2018.

China’s economic growth is forecast to moderate to 6.6 percent in 2018 from 6.9 percent in 2017.

India’s GDP is expected to pick up to a 7.4 percent growth rate in its fiscal year 2018/19.

For the Sub-Saharan African region, growth is expected to rise to 3.4 percent in 2018 from 2.8 percent in 2017.

In South Africa, economic growth is forecast to tick up to 1.5 percent in 2018 from 1.3 percent in 2017.

WORLD

3.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

3.2

3.83.9

2.11.8

2.3 2.4

4.3 4.4

4.84.9

3.4

1.4

2.8

3.4

EMERGING MARKET AND DEVELOPING

ECONOMIESEURO AREA

CHART 1 : REAL GDP GROWTH

SUB-SAHARAN AFRICA

2015 2016 2017 2018

%

Source: World Economic Outlook, April 2018, IMF

6

BUDGET SUPPLEMENT | 2018-2019 9 7 7

Global Trade

Global trade has picked up significantly in 2017, growing by 4.9 percent in contrast to 2.3 percent in 2016. It is expected to expand at a higher rate of 5.1 percent in 2018.

Global Foreign Direct Investment

In contrast with accelerated growth in GDP and trade, global FDI flows declined by 23 percent in 2017 according to the World Investment Report 2018 of UNCTAD.

UNCTAD forecasts a marginal increase in global FDI flows of about 5 percent in 2018.

FDI flows to developed economies fell by 37 percent in 2017 while flows to developing economies remained stable.

Flows to transition economies also dropped by 27 percent after increasing by 78 percent in 2016.

For 2018, UNCTAD forecasts an increase in flows to developed and transition economies while flows to developing countries will remain stable.

Mauritius and The Global Economy

Chart 5 shows that during the past four decades, economic growth in Mauritius has followed a similar pattern to that of global economic growth. However, on average, the economic growth rate of Mauritius has been higher than that of the global economy.

The chart also shows that Mauritius has not known an economic recession in the past 37 years. Mauritius holds the record for the longest run of positive economic growth in the world.

Mauritius Economic Growth and World Trade

Chart 6 shows that both GDP growth and the Export of Goods & Services of Mauritius are particularly sensitive to trends in Global Trade.

CHART 5: GDP GROWTH

-15

-10

-5

0

5

10

15

1978 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

Mauritius World

1981

Source: Statistics Mauritius & IMF WEO Database

CHART 4 : FDI FLOWS

2012 20130

200

400

600

800

1,000

1,200

USD

BIL

LIO

N

Developed countries Developing countries Transition Economies

859

652

65 84

693 649

2015

36

744

1,141

2016

64

1,133

670

2014

57

685597

Source: World Investment Report 2018, UNCTAD

%

CHART 2 : WORLD TRADE VOLUME GROWTH RATE

2015 2016 2017 2018

0

2

4

6

Source: World Economic Outlook April 2018, IMF

%

1985 1990 1995 2000 2005 2010 2015

-20

-10

0

10

20

30

Mauritius GDP Growth Rate Mauritius Exports of Goods & Services

World Trade Volume (IMF)

1980

Source: Statistics Mauritius & IMF WEO Database

CHART 6: MAURITIUS GDP GROWTH AND WORLD TRADE GROWTH

%

CHART 3 : WORLD FDI FLOWS

2012

1,000

1,200

1,400

1,600

1,800

2,000

USD

BIL

LIO

N

2013 2014

Source: World Investment Report 2018, UNCTAD

20162015 2017

47

712671

2017


Sour

ce: o

nthe

wor

ldm

ap.c

om

Seychelles

Mauritius

Reunion Rodrigues

Agalega Islands

CargadosCarajosIslands

Comores

Madagascar

INDIAN OCEAN

INDIAN OCEANRodrigues

INDIAN OCEAN


Most indicators point to a firming up of macro-economic fundamentals and an economic re-newal leading to a higher growth path.

Both the IMF and Moody’s have expressed opti-mism on the Mauritian economy.

The IMF views that the macroeconomic outlook is broadly positive:

Review of the Mauritian Economy: Highlights

Source: 2017 IMF Article IV Consultation Staff Report

“Economic activity is expected to remain robust, driven by the government’s ambitious Public Investment Program, and supported by continued dynamism in the tourism sector and financial intermediation activities. [...] Considering Mauritius’ track record of reinventing its economic model, there are grounds for optimism that the country will successfully manage the reform process.”

Source: Moody’s Investors Service Credit Opinion March 2018

In March 2018, Moody’s re-affirmed the Baa1 rating for Mauritius – a rating which according to them is supported by strong growth and macroeconomic resiliency to shocks.

“The Mauritian government’s credit profile is supported by a diversified, upper-middle income economy that has demonstrated resilience to external shocks, despite being small and open.”


Macro-Economic Performance

10

PRODUCTIVITYGROWTHREAL GDP

GROWTH

CONSUMPTION& SAVINGS

LABOUR PRODUCTIVITY

• 2017: 3.8% (Estimates)• FY 2017/18: 3.9% (Estimates)

• 2018 : 3.9% (Forecast)• FY 2018/19: 4-4.2% (Forecast)

• 2017: 2.4%• 2016: 3.4%

CAPITAL PRODUCTIVITY • 2017: 0.9%• 2016: 1.1%

MULTI FACTOR PRODUCTIVITY

• 2017: 1.4%• 2016: 1.9%

TOTAL CONSUMPTION EXPENDITURE

• Real terms: 2.7% • Nominal terms: 6.1%

GROWTH IN 2017

• 2017: 89.3% • 2016: 89.0%

AS A % OF GDP

• Real terms: 3.0%GROWTH IN 2017

• 2017: 74.2% • 2016: 73.6%

AS A % OF GDP

HOUSEHOLD CONSUMPTION EXPENDITURE

• 2017: 10.7%

RATIO OF GROSS DOMESTIC SAVINGS TO GDP

• 2016: 11.0%

UNEMPLOYMENTRATE LOWEST IN 16 YEARS

• 2017: 7.1% • 2016: 7.3%

FEMALE UNEMPLOYMENT

• 2017: 10.7%• 2016: 11.2%

YOUTH UNEMPLOYMENT

• 2017: 24.9%• 2016: 23.9%

FOREIGN CURRENCY RESERVESHIGHEST IN MORE THAN FIVE DECADES

• 2017: Rs 220.0 BILLIONEnough to cover 10.7months’ imports

• 2016: Rs 178.9 BILLION


INVESTMENT

INFLATION

TOTAL INVESTMENT

• 2017: 17.3% • 2016: 17.2%

AS A % OF GDP

PRIVATEINVESTMENT

• 2017: 13.2% • 2016: 12.8%

AS A % OF GDP

PUBLICINVESTMENT

• 2017: 4.1% • 2016: 4.4%

AS A % OF GDP

FOREIGN DIRECTINVESTMENT

• 2017: Rs 17.5 BILLION• 2016: Rs 13.6 BILLION

PUBLIC FINANCERS

• FY 2016/17: 3.5%• FY 2015/16: 3.5%

BUDGET DEFICIT

RECURRENT BUDGET DEFICIT• FY 2016/17: 1.9%• FY 2015/16: 1.5%

PUBLIC SECTOR DEBT• END-JUNE 2017: 64.8%• END-JUNE 2016: 65.0%

TOTAL REVENUE• FY 2016/17: 21.0%• FY 2015/16: 20.9%

TOTAL EXPENDITURE• FY 2016/17: 24.5%• FY 2015/16: 24.4%

HEADLINEINFLATION RATE

• 2017: 3.7% • 2016: 1.0%

YEAR-ON-YEAR INFLATION RATE

• 2017: 4.2% • 2016: 2.3%

CORE 1 INFLATION• 2017: 2.2% • 2016: 0.4%

CORE 2 INFLATION• 2017: 2.2% • 2016: 2.2%

EXTERNAL BALANCE

BALANCE OF PAYMENT SURPLUS

• 2017: 6.2% • 2016: 6.0%

AS A % OF GDP

CURRENT ACCOUNT DEFICIT

• 2017: 6.6% AS A % OF GDP

• Total exports of goods and services contracted by 0.6%, while total im-ports of goods and services increased by 8.2%.

TOTAL EXPORTS/IMPORTS OF GOODS AND SERVICES

AS A % OF GDP


0 2 4 6 8 10

0 2 4 6 8 10 1 0.8 0.6 0.4 0.2 0

% Growth in 2017% Contribution to Growth in 2017

5.50.77.50.3

0.43.10.4

5.2

0.31.40.2

4.4

0.25.40.24.5

0.21.80.1

3.3

FINANCIAL AND INSURANCE ACTIVITIES

CONSTRUCTION

TOURISM

WHOLESALE & RETAIL TRADE

ICT

MANUFACTURING

HUMAN HEALTH & SOCIAL WORK ACTIVITIES

PROFESSIONAL, SCIENTIFIC & TECHNICAL ACTIVITIES

REAL ESTATE ACTIVITIES

EDUCATION

1 0.8 0.6 0.4 0.2 0

% Growth in 2017% Contribution to Growth in 2017

13

Sectoral Performance


Mauritius GDP Growth

In 2017, GDP expanded by 3.8 percent, with positive growth in all sectors, except sugarcane and textile.

It is expected that GDP growth would be 3.9 percent in 2018, mainly driven by financial services, construction and tourism. Sectors such as agriculture, food processing, textile, construction, retail trade, ICT and global business are expected to register a higher growth rate than in 2017.

In nominal terms, GDP at market prices increased by 5.8 percent in 2017 compared to 6.1 percent in 2016. It is expected to pick up to 7.0 percent in 2018.

Employment/Unemployment

The unemployment rate declined to 7.3 percent in 2016 and further to 7.1 percent in 2017.

Youth Unemployment

A high proportion of the unemployed were among the youths within the 16-24 years age group.

The youth unemployment rate is estimated at 24.9 percent in 2017 compared to 23.9 percent in 2016.

The employment of Mauritians increased from 538,600 in 2016 to 545,100 in 2017. Increase in female employment accounted for 58 percent of the net increase in total Mauritian employment.

There were 28,400 foreign workers in Mauritius in 2017.

Total activity rate was 59.6 percent in 2017, same as in 2016. Male activity rate remained unchanged at 74.3 percent while female activity rate increased from 45.5 percent to 45.7 percent.

CHART 7 : MAURITIUS’ GDP GROWTH

2015

3.5

3.63.6

3.8 3.8

3.9

3.7

3.8

3.9

4.0

2016 2017 2018F

CHART 9 : YOUTH UNEMPLOYMENT RATE

20172016201510

15

20

25

30

21.6

26.3

32.7

23.9

18.3

31.2

19.5

24.9

31.9

MALE

FEMALE

BOTH SEXES

35

THOUSAND

CHART 10 : MAURITIAN EMPLOYMENT

2015

0 100 200 300 400 500 600

2016

2017

MALE FEMALE BOTH SEXES

%

%

14

Economic Review & Outlook: Macroeconomy

3.5

5.5

7.5

9.5

11.5

13.5

2015 2016 2017

5.54.8

4.8

7.17.37.9

11.6 11.210.7

Both sexesMale Female

%

CHART 8 : UNEMPLOYMENT RATE


ProductivityThe gap between growth in labour productivity and average compensation continued to widen, leading to a constant rise in unit labour costs.

In 2017, labour productivity increased by 2.4 percent, while average compensation went up by 4.1 percent. As a result, unit labour cost rose by 1.7 percent.

Sectors with the highest increase in labour productivity during the period 2009-2017 were administrative and support service activities, ICT and financial services.

Capital productivity is on a rising trend and increased by 0.9 percent in 2017.

Multifactor productivity, which measures the rate of change in productive efficiency, increased by 1.4 percent in 2017 compared to 1.9 percent in 2016.

Consumption ExpenditureTotal consumption expenditure increased, in nominal terms, by 5.3 percent in 2016 and 6.1 percent in 2017, compared to 4.8 percent in 2015, mainly due to higher growth in household consumption.

In real terms, total consumption expenditure increased by 2.7 percent in 2017 compared to 2.9 percent in 2016.

In 2018, total consumption expenditure is expected to increase by a higher rate of 6.8 percent in nominal terms and by 3.1 percent in real terms.

2017

CHART 12 : LABOUR PRODUCTIVITY

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

50

100

150

200

IND

EX

UNIT LABOUR COST (MRU)

AVERAGE COMPENSATION OF EMPLOYEES

LABOUR PRODUCTIVITY

CHART 13 : PRODUCTIVITY AND COMPETITIVENESS INDICATORS (YEAR 2007 = 100)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

130

120

110

100

90

LABOUR PRODUCTIVITY

CAPITAL PRODUCTIVITY

MULTI FACTORPRODUCTIVITY

IND

EX

0

2

4

6

8

10

12

CHART 14 : CONSUMPTION EXPENDITURE (NOMINAL GROWTH)

2015 2016 2017 2018F

4.8 4.75.3 5.3

4.4

9.7

6.16.7

3.2

6.87.3

4.2

FINAL CONSUMPTION EXPENDITURE

HOUSEHOLDS GENERAL GOVERNMENT

2017

45.7

59.6 59.6

74.3

BOTH SEXES

CHART 11 : ACTIVITY RATE

30

40

50

60

70

80

20162015

74.8 74.3

45.546.6

60.4

MALE FEMALE

%

%

15


Macroeconomy (cont’d)

National Savings

Gross Domestic Savings, as a percentage of GDP, was 11 percent and 10.7 percent respectively in 2016 and 2017. In 2018, it is expected to rise to 10.9 percent.

Investment

The investment rate, defined as the ratio of gross domestic capital formation to GDP, averaged 17.3 percent during the period 2015-2017.

The ratio of private investment to GDP for the period averaged 12.9 percent.

Total investment grew by 5.9 percent in nominal terms in 2017 compared to 5.4 percent in 2016.

Investment in non-residential buildings, which fell by around 15 percent on average annually over 2013-2016, increased by 29.7 percent in 2017 mainly due to the renovation of a number of hotels.

For 2018, the investment rate is forecast at around 17.2 percent. A decline in the ratio of private investment to GDP from 13.2 percent in 2017 to 12.6 percent in 2018 would be offset by a rise in public investment to GDP ratio from 4.1 percent to 4.6 percent. Investment in non-residential building would remain high while a pick-up is expected in residential buildings and other construction works.

Foreign Direct Investment Inflows

Mauritius continues to attract significant amount of foreign direct investment.

[Note: For the period 2015-2017, the figures do not include reinvested earnings and shareholders’ loans and therefore are not comparable with previous years’ data.]

In 2017, there were some Rs 17.5 billion of FDI flows in Mauritius compared to Rs 13.6 billion in 2016. These investments were mainly in real

CHART 18: FOREIGN DIRECT INVESTMENT FLOWS IN MAURITIUS

(EXCLUDING GLOBAL BUSINESS)

CHART 16 : INVESTMENT RATE

0

5

10

15

20

2018F201720162015

4.7

12.6

4.4

12.8

4.1

13.2

4.6

12.6

17.217.317.217.4

TOTALPRIVATEPUBLIC

CHART 17 : INVESTMENT (NOMINAL GROWTH)

-20

-10

0

10

20

30

40

%

2018F201720162015

1.8

-16.7

3.613.4

-8.0-10.6

-0.1

29.7

5.24.8

25.6

15.6

RESIDENTIAL BUILDING

NON- RESIDENTIAL BUILDING

OTHER CONSTRUCTION WORK

2015 2016 2017

9,677

13,648

17,491

4000

9000

14,000

19,000

CHART 15 : SAVINGS

2015 2016 2017 2018F10.0

10.2

10.4

10.6

10.8

11.0

11.2

10.4

11.0

10.7

10.9

GROSS DOMESTIC SAVINGS (GDS) AS A % OF GDP AT MARKET PRICES

%

%

Rs

Mill

ion

16


estate development and financial services, which together accounted for 87.9 percent of total inflows. The share of FDI directed towards the construction sector amounted to 6.0 percent compared with an average of 4.2 percent during the previous 4 years.

France was the main source of FDI inflows, accounting for 25.1 percent of total inflows in 2017. Significant inflows were also registered from Luxembourg, South Africa, China and the UK.

Foreign Direct Investment Outflows

In 2017, FDI outflows increased to Rs 2.6 billion, from Rs 1.8 billion in 2016. Most of the investment was directed towards financial services, manufacturing, and real estate development. Some 74 percent of the investment went to developing countries, particularly in Africa (Kenya, Mozambique and Madagascar) and South Asia.

External Trade & Balance of Payment

In 2017, Mauritius registered a visible trade deficit of 21.6 percent of GDP. The high deficit is explained by lower exports of textile and clothing products and lower re-exports of telecommunication equipment, combined with higher imports of petroleum products and road vehicles.

In 2018, the visible trade deficit is expected to slightly go down to 21.5 percent of GDP.

The current account of the balance of payments registered a deficit of 6.6 percent of GDP in 2017.

The surplus in the overall balance of payments has been rising in recent years and reached 6.2 percent of GDP in 2017. Net inflows of investment and government loans in the capital and financial account were more than adequate to finance the current account

CHART 19 : FDI INFLOWS BY SECTOR, 2017

CHART 20 : DIRECT INVESTMENT ABROAD

0

500

1,000

1,500

2,000

2,500

3,000

RS

MIL

LIO

N

2,410

1,842

2,553

201720162015

CHART 21: VISIBLE TRADE BALANCE AS A % OF GDP

22.8

-18.2 -18.6 -21.6 -21.5

41.0

19.4

38.0

17.7

39.3

17.1

38.6

201720162015 2018F

VISIBLE TRADE BALANCE

IMPORT OF GOODS

EXPORT OF GOODS

CHART 22 : COMPONENTS OF CURRENT ACCOUNT AS A % OF GDP

CURRENT ACCOUNTSERVICESINCOME AND CURRENT TRANSFERS

GOODS

0

10

-10

-20

-30

-16 -17 -20

2015 2016 2017

Others 3.4%

Information & Communication 0.4%

Accommodation and food service activities 2.2%

Construction 6.0%

Financial and Insuranceactivities 37.7%

Real Estate

activities50.3%

17


Foreign Currency Reserves

As at end May 2018, total reserves amounted to Rs 222.0 billion, equivalent to some 10.7 months of imports. This is an increase of 23.8 percent over the level of reserves in May 2017.

Inflation

Headline inflation reached a low of 1.0 percent in 2016. It rose to 3.7 percent in 2017 due to the increase in prices of petroleum products, prices of vegetables following unfavourable climatic conditions and excise taxes on tobacco and alcoholic products. It further rose to 5.0 percent for the year ending April 2018 due to a jump in the prices of vegetables.

Year-on-year inflation rate in December 2017 was 4.2 percent compared to 2.3 percent in December 2016. It was at 3.7 percent in April 2018.

CORE1 inflation, which excludes “Food, Beverages and Tobacco” components and mortgage interest on housing loan from the CPI basket, increased from 0.4 percent in 2016 to 2.2 percent in 2017. It stood at 2.5 percent in March 2018.

CORE2 inflation, which excludes food, beverages and tobacco, mortgage interest, energy prices and administered prices, was rather stable at 2.2 percent over the period.

[ Note: Headline inflation is measured by comparing the average level of

prices, as measured by the CPI, during a twelve-month period with the average level during the corresponding previous twelve-month period.]

Exchange Rate

In 2017, the Mauritian rupee appreciated against the currencies of most of its main trading partners, except the South African rand. In nominal effective terms, as measured by the Mauritius Exchange Rate Index 1 (MERI1), the rupee appreciated by 2.1 percent between December 2016 and December 2017 and 1.7 percent between December 2015 and December 2016, compared to a depreciation of 9.4 percent between December 2014 and December 2015.


CHART 23 : GROSS OFFICIAL INTERNATIONAL RESERVES

50,0002.0

4.0

6.0

8.0

10.0

12.0

0.0

100,000

150,000

200,000

250,000

RS

MIL

LIO

N

MO

NTH

S

JAN

15

JAN

16

JAN

17

JAN

18

MA

R 1

5

MA

R 1

6

MA

R 1

7

MA

R 1

8

MAY

15

MAY

16

MAY

17

JUL

15

JUL

16

JUL

17

SEPT

15

SEPT

16

SEPT

17

NO

V 1

5

NO

V 1

6

NO

V 1

7

GROSS OFFICIAL INTERNATIONAL RESERVES IMPORT COVER (RHS)

%

CHART 25: MERI 1CHANGE IN MERI 1 (+VE MEANS DEPRECIATION)

DEC 2014/DEC 2015 DEC 2015/DEC 2016 DEC 2016/DEC 2017

1.0

-4.0

6.0

%

9.4

-1.7 -2.1

MA

RS

15

MA

RS

16

MA

RS

17

JUN

15

JUN

16

JUN

17

SEPT

15

SEPT

16

SEPT

17

DEC

15

DEC

16

DEC

17

MA

R 1

18

HEADLINE CORE1 CORE2 YEAR-ON-YEAR

0

1

2

3

4

5

CHART 24: INFLATION RATE


Against individual currencies, the rupee evolved in line with international trends.

Against the US dollar, the rupee appreciated by 6.1 percent between December 2016 and December 2017. It was rather stable between December 2015 and December 2016.

Against the Euro, the rupee depreciated by 5.4 percent between December 2016 and December 2017, in contrast to an appreciation of 2.9 percent between December 2015 and December 2016.

Against the British pound, the rupee depreciated by about 1 percent against the pound between December 2016 and December 2017. It appreciated by around 17 percent between December 2015 and December 2016.

Excess Liquidity

Excess liquidity in the banking sector, measured as cash balances held by banks in excess of the statutory cash reserve requirements, reached Rs 26 billion in December 2017 and remained at an elevated level of around Rs 22 billion, on average, during the first quarter of 2018.

Government Revenue

Government total revenue amounted to 21 percent of GDP in FY 2016/17, almost same as in FY 2015/16.

Tax revenue as a percentage of GDP increased from 18.5 in FY 2015/16 to 18.8 in FY 2016/17.

Non-tax revenue, which includes grants from donor countries and transfers from Special Funds, amounted to 2.2 percent of GDP, slightly lower than in FY 2015/16.

CHART 26: EXCHANGE RATE

2014 2015/16 2016/17

20.320.9 21.0

2.22.42.0

TAX REVENUE NON-TAX REVENUE TOTAL REVENUE

Source: Ministry of Finance and Economic Development

CHART 28: TOTAL REVENUE AS A % OF GDP

18.4 18.5 18.8

38

33

28

RS/USD

45

4035

30

Jan-

15A

pr-1

5

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

RS/EUR

Jul-1

5

Jan-

17Ja

n-16

Jan-

18

Apr

-17

Oct

-17

Oct

-17

Jan-

15A

pr-1

5

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

Jul-1

5

Jan-

17Ja

n-16

Jan-

18

Apr

-17

Oct

-17

Oct

-17

Jan-

15A

pr-1

5

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

Jul-1

5

Jan-

17Ja

n-16

Jan-

18

Apr

-17

Oct

-17

Oct

-17

50

30

RS/GPB

19

CHART 27: EXCESS LIQUIDITY

0

10,000

20,000

30,000

19 M

AR

S 15

31 M

AR

S 16

30 M

AR

S 17

25 JU

N 1

5

23

JUN

16

22 JU

N 1

7

3 S

EPT

15

29

SEPT

16

18 S

EPT

17

24

DEC

15

22 D

EC 1

6

21 D

EC 1

7

29 M

AR

118

RS

MIL

LIO

N

15,000

25,000


VAT receipt is the largest component of tax revenue, followed by personal and corporate income taxes and excise duties. As a percentage of GDP, VAT receipts were stable at 6.8, revenue from income tax increased from 4.5 to 4.9 in FY 2016/17, and excise duties increased from 3.8 to 3.9 mainly due to the increase in excise rates on tobacco and alcoholic products.

External grants increased from 0.1 of GDP to 0.6 percent in FY 2016/17 mainly due to the grants provided by the Government of India for the implementation of the Metro Express project, the construction of the Supreme Court building, the ENT Hospital, acquisition of tablets for primary school students and the construction of social housing.

Government ExpenditureTotal government expenditure as a percentage of GDP reached 24.5 in FY 2016/17.

Capital expenditure as a percentage of GDP went down from 2.5 percent of GDP to 2.3 percent in FY 2016/17.

The ratio of recurrent expenditure to GDP increased from 21.9 percent to 22.2 percent in FY 2016/17 due to higher staff costs and increase in pensions and other social benefits.

CHART 29: SHARE OF TAX REVENUE, % FY 2016/17

RECURRENT EXPENDITURE

CAPITAL EXPENDITURE

TOTAL EXPENDITURE

CHART 31: RECURRENT EXPENDITURE AS A % OF GDP

0.0

2.0

4.0

6.0

6.1

2.6

4.9

6.2

2.4

5.96.3 6.1

2.4

2014 2015/16 2016/17

COMPENSATION OF EMPLOYEES

INTEREST SOCIAL BENEFITS

8.0




2016/172015/162014

23.5 24.4 24.5

2.32.52.9

CHART 30: TOTAL EXPENDITURE AS A % OF GDP

Customs Duties 1.4%

PersonalIncome

Tax 10.3%

Other Taxes17.7%

VAT 35.9%

CorporateIncome Tax

14.1%

Excise Duty 20.5%


20.6 21.9 22.2

20


Fiscal BalancesFor FY 2016/17, the budget deficit was 3.5 percent of GDP while the recurrent budget registered a deficit of 1.9 percent of GDP.

After taking into account transactions in financial assets, namely loans and equity, Government borrowing requirements slightly increased from 3.4 percent of GDP in FY 2015/16 to 3.5 percent in FY 2016/17.

Expenditure by Sector

CHART 33: FISCAL BALANCES AS A % OF GDP

2014 2015/16 2016/17

OVERALL BUDGET DEFICIT RECURRENT BUDGET DEFICIT GOVERNMENT BORROWING REQUIREMENTS

0.4%

3.2%

3.4% 3.4% 3.5%

3.5%3.5%

1.5%1.9%

CHART 32: EXPENDITURE BY SECTOR, FY 2016/17

Social sectors 55.0%

Economic Sectors 8.9%

Environmental Protection 1.2%

Others 34.8%Education 14.3%

Health 10.1%

Housing 2.2%Recreation, Cultureand Religion 0.8%

Social Protection 27.7%



The share of Government expenditure allocated to social sectors increased from 54.1 percent in

2015/16 to 55.0 percent in FY 2016/17.

21


Public Sector DebtPublic sector debt, which includes debt of central Government, local authorities/parastatal bodies and public enterprises, amounted to 65.5 percent of GDP, as at end March 2017. This high level of debt was partly due to the issuance of Government securities for mopping up excess liquidity in the banking sector as from September 2014. As at end March 2017, some Rs 16 billion of Government securities, equivalent to 3.6 percent of GDP, were issued for the purpose.

Since April 2017, Government securities are no longer being issued for mopping up excess liquidity.

At end December 2017, the debt ratio fell to 63.4 percent. It declined further to 62.9 percent at end March 2018.

Structure of GovernmentDebt PortfolioDomestic v/s ExternalMost of the Government debt stock is domestically sourced. As at end March 2018, some 83 percent of Government debt was held by domestic investors.

Most of Government external debt are from bilateral (G2G) sources or multilateral institutions and are on concessionary terms.

Currency composition of external debtThe currency composition of Government external debt is generally aligned to that of proceeds from export of goods and services. Thus as at March 2018, 42.4 percent of external debt was denominated in Euro, 30.3 percent in US dollar, and 10.8 percent in Chinese Yuan.

CHART 34 : PUBLIC SECTOR DEBT AS % OF GDP

-5%52%

54%

56%

58%

60%

62%

64%

66%

68%

5%

15%

25%

35%

45%

JUN15

SEP15

DEC15

MAR 16

MAR 17

MAR 18

JUN 16

JUN 17

SEP 16

SEP 17

DEC 16

DEC 17

6.3% 6.1% 5.9% 5.5% 5.4% 5.3% 5.1% 5.6% 5.5% 6.7% 6.4% 6.3%

56.6%56.9%

57.8%

59.3%59.9%

59.3%59.5%59.5%58.6%

57.7%57.3%

56.6%

62.9%63.4% 63.6%

64.2%65.0% 64.9% 64.4%

65.5%64.8% 64.5%

63.4%62.9%

PUBLIC SECTOR DEBT

BUDGETARY CENTRAL GOVERNMENT TOTAL DEBT

PUBLIC ENTERPRISES DEBT (RHS)

CHART 35: COMPOSITION OF GOVERNMENT DEBT

DEC 14

10%

30%

50%

70%

90%

JUN 15

DEC15

JUN16

DEC16

JUN17

DEC17

MAR18

DOMESTIC EXTERNAL

76.3%

23.7%

75.9%

24.1%

76.9%

23.1%

78.7%

21.3%

80.0%

20.0%

82.6%

17.4%

82.8%

17.2%

83.1%

16.9%


DEC14

JUN 16

JUN 17

DEC 17

MAR 18

CHART 36 :CURRENCY COMPOSITION OF GOVERNMENT EXTERNAL DEBT

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

USD EURO CHINESE YUAN OTHERS

39.5% 10.7%

11.3%

11.2%

11.0%

10.8% 16.5%

16.1%

16.2%

14.8%

15.1%

41.8%

33.5%

32.3%

30.3% 42.4%

40.7%

39.1%

32.1%

34.7%




22


CHART 38: STRUCTURE OF GOVERNMENT DOMESTIC DEBT (%)

Debt affordability

The debt affordability metrics have improved significantly as: - the ratio of interest payments to Government revenue has declined from 20.1 percent in FY 2007/08 to 11.6 percent in FY 2016/17; and- the ratio of interest payments to GDP has come down from 3.9 percent to 2.4 percent over the same period.

Maturity structure

The maturity structure of Government debt has improved as evidenced by the following indicators:

Between end-December 2010 and end-March 2018:

(a) The share of short-term domestic debt declined from 26 percent to 11.4 percent, and the share of long-term domestic debt increased from 39 percent to 63 percent.

(b) The average time to maturity of Government domestic debt has been gradually lengthened from 2.9 to 4.7 years thereby reducing debt refinancing risks.

(c) Almost all external debt is long-term, with an average time to maturity of 5.9 years.

Interest Rate Risk

Interest rate risk is very low as more than 95 percent of Government’s domestic debt has a fixed interest rate.

The average time for re-fixing total Government debt, which is also a measure of interest rate risk, has steadily increased and reached 4 years in March 2018.

External debt service ratio

The external debt service ratio (external debt service as a percentage of revenue from exports of goods and non-factor services) has been relatively low in recent years. From 3.7 percent during FY 2015/2016, it increased to 6.2 percent at end-June 2017 mainly due to the early repayment of external loans of some Rs 4.2 billion. For the period March 2017 to March 2018, the debt service ratio declined to 5.8 percent.

-1%

4%

9%

0%

20%

40%

60%

80%

100%

DEC10

JUN11

JUN12

JUN13

JUN14

JUN15

JUN16

JUN17

DEC11

DEC12

DEC13

DEC14

DEC15

DEC16

DEC17

MAR18

SHORT TERM MEDIUM TERM LONG TERM

Source: Ministry of Finance and Economic DevelopmentCHART 37: DEBT AFFORDABILITY RATIOS

0%

2007/08 2008/09 2015/16 2016/172010 2011 2012 2013 2014

10%

20%

30%

INTEREST PAYMENTS TO GOVERNMENT REVENUE

INTEREST PAYMENTS TO GDP (RHS)


CHART 39: EXTERNAL DEBT SERVICE RATIO

-1%

4%

9%

Dec 2014 Jun 2016 Jun 2017 Dec 2017

3.8%

3.7%

6.2% 5.9%

Chart 39: External Debt Service Ratio

Mar 2018

3.8%

23


Traditional SectorsAGRICULTURE, FORESTRY AND FISHING

The contribution of the agricultural sector to the economy declined to 3.1 percent in 2017.

In 2017, its output contracted by 0.2 percent due to lower cane and sugar production and lower growth in production of food crops. It is expected to grow by 1.1 percent in 2018.

In 2016, employment in the sector amounted to 41,300, accounting for 7.3 percent of total employment in the economy.

CHART 40: AGRICULTURE, FORESTRY AND FISHING AS A % OF GDP

2007

3

4%

5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

CHART 41: REAL GROWTH RATE - AGRICULTURE, FORESTRY AND FISHING

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-2.2-4.0-2.0+0.0+2.0+4.0+6.0+8.0

+10.0+12.0

-0.4

+3.5 +3.7 +3.7

-0.2

+1.1+2.0

+0.3+1.1+0.5

+2.7

+10.2

CHART 42: TOTAL EMPLOYMENT - AGRICULTURE, FORESTRY AND FISHING

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.0

20.0

40.0

60.0

THO

USA

ND

SUGARCANE NON SUGAR

Economic Review & Outlook: Sectoral

%

24


THE SUGARCANE SUB-SECTOR

The share of the sugarcane sub-sector in Agriculture has declined in recent years to reach 18.7 percent in 2017. Its share in GDP has consequently declined to 0.6 percent.

Gross value added in the sub-sector declined by 7.9 percent in real terms in 2017 compared to a 5.2 percent growth in 2016. It is expected to register a zero growth in 2018.

In 2017, some 49,973 hectares, under sugarcane cultivation, were harvested, down by 2.9 percent compared to 2016.

CHART 43: CONTRIBUTION OF SUGARCANE SECTOR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

0.00 0

1.0020

40% %

2.00 60

SUGARCANE AS A % OF AGRICULTURE (RHS) SUGARCANE AS A % OF GDP

CHART 45: CANE AREA

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

45,000

60,000

50,000

55,000

65,000

75,000

70,000

HEC

TAR

ES

AREA UNDER CANE CULTIVATION CANE AREA HARVESTED

CHART 44: REAL GROWTH RATE - SUGARCANE SECTOR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-15.0

-10.0

-5.0

+0.0%

+5.0

+10.0

+15.0

+20.0

-9.9

+4.3

+14.9

-6.5

+2.4

-5.4-2.2 -3.5 -3.8

+5.2

-7.9

0.0

-1.4

25


Sugarcane production amounted to 3.7 million tonnes in 2017, compared to 3.8 million tonnes in

2016. Total sugar produced was 355,213 tonnes in 2017, down from 386,277 tonnes in 2016.

CHART 48: EMPLOYMENT - SUGARCANE SECTOR

CHART 47: CANE YIELD

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.0

20.0

40.0

60.0

80.0

100.0

65.973.1 77.3 74.4 74.6 72.9 71.4 79.8 76.5 73.8 74.3

TON

NES

/ H

ECTA

RES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2.0

7.0

12.0

17.0

THO

USA

ND


CHART 46: CANE AND SUGAR PRODUCTION

20073,400,000 300,000

350,000

400,000

450,000

500,000

3,900,000

4,400,000

4,900,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CANE PRODUCTION SUGAR PRODUCTION (RHS)

TON

NES

TON

NES

Average cane yield per hectare increased from 73.8 tonnes in 2016 to 74.3 tonnes in 2017, after

two consecutive years of decline.

In 2016, the sugarcane industry accounted for 30.0 percent of total employment in the agricultural

sector. Employment in the industry was at around 12,400 in 2016, of which 71.8 percent were men.

EMPLOYMENT

THE SUGARCANE SUB-SECTOR (cont’d)

Traditional Sectors (cont’d)


NON-SUGAR AGRICULTURAL SECTOR

The share of non-sugar agricultural activities in Agriculture increased to 81.3 percent.

The non-sugar sector grew by 2.3 percent in 2017 and a growth of 1.3 percent is expected in 2018.

CHART 50: REAL GROWTH RATE - NON-SUGAR SECTOR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

0.0

+2.0

+4.0%

+6.0

+8.0

+4.5

+1.5

+6.9

+2.7+3.9 +4.1

+1.8

+6.5

+1.6+3.2

+2.3

+1.3

+3.5

CHART 51: TEA PRODUCTION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

2,000

4,000

6,000

8,000

10,000

GREEN

TON

NES

BLACK TEA

CHART 49: CONTRIBUTION OF NON-SUGARCANE SECTOR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

0.0 0

50 %

100

1.0%

2.0

3.0

NON SUGARCANE AS A % OF AGRICULTURE (RHS)

NON-SUGARCANE AS A % OF GDP

TEA PRODUCTION

Tea plantation covered an area of 622 hectares in both 2016 and 2017.

Some 7,300 tonnes of green tea leaves were produced in 2017. The production of

manufactured tea (Black Tea) increased by 1.9 percent from 1,353 tonnes in 2016 to 1,379 tonnes in 2017.

27


FOOD CROPS

A total of 7,780 hectares, under food crops, were harvested in 2017, representing an increase of 0.2 percent. The production of food crops

increased by 0.3 percent from 106,271 tonnes in 2016 to 106,621 tonnes in 2017.

CHART 52: FOODCROPS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201790,000 5,000

7,000

9,000

110,000

130,000

120,000

100,000TON

NES

HEC

TAR

ES

PRODUCTION AREA (RHS)

CHART 53: TOTAL FISH PRODUCTION

TON

NES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

5,000

20,000

30,000

25,000

15,000

6,377 5,660 6,706 5,887 5,283 4,780 5,795

12,63714,239

16,698

22,732

FISH PRODUCTION

Fish production increased by 36.1 percent, from 16,698 tonnes in 2016 to 22,732 tonnes in 2017. Production of other catch (mainly tuna

for processing and exports), which accounts for 92 percent of total fish production, rose by 40.8 percent. Fresh coastal fish catch decreased by 2.6 percent.

LIVESTOCK

In 2017, production of beef from live cattle amounted to 2,078 tonnes, 6.2 percent higher than in 2016. Ninety six percent of the production came from the slaughter of imported cattle which increased by 4.7 percent in 2017.

Production of goat meat and mutton went up by 33.3 percent from 42 tonnes in 2016 to 56 tonnes in 2017. The production of pork decreased by 4.1 percent.

28



POULTRY

The production of poultry increased by 3.7 percent from 45,800 tonnes in 2016 to 47,500 tonnes in 2017.

MILK AND CHEESE

EMPLOYMENT

Total employment in the non-sugar sector was 28,900 in 2016, 36.3 percent of whom were women.

CHART 54: LIVESTOCK SLAUGHTERED

CHART 55: LOCAL PRODUCTION AND IMPORTS OF MILK

20072006 2008 2009 2010 2011 2012 2013 2014 2015 201615,00018,00021,00024,00027,00030,000

NO

OF

HEA

DS

TON

NES

2013 2014 2015 2016

0

6,000

12,000

18,000

24,000

5,025 5,025 4,525 4,025

IMPORTED MILKLOCAL PRODUCTION OF MILK

5.0

25.0

THO

USA

ND

2007

CHART 56: EMPLOYMENT - NON SUGAR SECTOR

20082007 2009 2010 2011 2012 2013 2014 2015 2016


THO

USA

ND

25.0

5.0

15.0

Some 4,025 tonnes of fresh milk and cream were produced in Mauritius in 2016. Imports of fresh

and dried milk went up from 17,857 tonnes in 2015 to 22,414 tonnes in 2016.

29


MANUFACTURING

The manufacturing sector includes Sugar Processing, Food, Textiles and Other Manufacturing activities.

`Chart 57 shows that the share of the manufacturing sector, in terms of contribution to GDP, has been decreasing.

CHART 58: REAL GROWTH RATE - MANUFACTURING

CHART 59: TOTAL EMPLOYMENT - MANUFACTURING

CHART 57: MANUFACTURING AS A % OF GDP

2007 2008 2009 2010 2011 2012 2013 2014 2015 201611

13

15

17

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

+0.0

+1.0

+2.0

+3.0%

+4.0

+5.0

+2.6 +2.9+2.4

+1.9

+0.7

+2.1

+4.7

+1.8

+0.1 +0.3

+1.4 +1.3+1.9

90.0

100.0

110.0

105.0

95.0

115.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

THO

USA

ND

112.9 113.4

104.5 103.199.5 98.8

101.6 101.6 101.098.7

The manufacturing sector grew by 1.4 percent in 2017, compared to 0.3 percent in 2016.

In 2018, the sector is expected to grow by 1.3 percent, with improvements in Textile and Food.

2017 2018F

In 2016, some 98,700 people were employed in the manufacturing sector.



The output per employee increased to Rs 546,160 in 2016.

SUGAR MANUFACTURING

In 2018, the industry is expecting a sugar production of around 355,000 tonnes which is the same as in 2017.

In 2017, the sugar manufacturing sector grew by 2.4 percent. It is expected to register a zero growth rate in 2018.

CHART 60: OUTPUT PER EMPLOYEE IN MANUFACTURING

300,000

350,000

400,000

450,000

500,000

550,000

600,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

RS

CHART 61: TOTAL SUGAR PRODUCTION

340,000

390,000

440,000

490,000

TON

NES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CHART 62: REAL GROWTH RATE - SUGAR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-15.0

-10.0

-5.0

+0.0

+5.0%

+10.0

+15.0

+20.0

-12.8

+5.6

+18.0

-2.9

+4.1

-5.8 -5.1

+6.6

+2.4+0.4 +0.8 0.0 +0.7

31


In 2016, there were around 1,400 employees in the sugar milling sector.

FOOD PROCESSING

Food processing activities are expected to grow by 1.0 percent in 2018, higher than the 0.2 percent growth in 2017.

Total employment in the sector increased to around 18,300 in 2016.

CHART 63: TOTAL EMPLOYMENT - SUGAR

CHART 64: REAL GROWTH RATE - FOOD, EXCLUDING SUGAR

CHART 65: TOTAL EMPLOYMENT - FOOD, EXCLUDING SUGAR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.0

0.5

1.0

1.5

2.0

THO

USA

ND

1.5 1.5 1.5 1.5 1.5 1.51.4

1.61.8

1.6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-2.0

0.0

5.0

10.0

15.0

20.0

0.0+2.0+4.0%+6.0+8.0

+10.0

+2.7

11.4 12.113.2 13.8 14.5

15.2 16.517.3 18.2 18.3

+6.1

+4.2 +4.1

-1.4-0.3

+7.6

+2.4

+3.0

+1.4 +0.2 +1.0

+2.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

THO

USA

ND



TEXTILE

Textile manufacturing is expected to expand by 1.0 percent in 2018, following a contraction of 0.7 percent in 2017.

Total employment in the sector was around 47,100 in 2016, compared to around 48,600 in 2015.

OTHER MANUFACTURING

Other manufacturing sectors grew by 4.5 percent in 2017 and are expected to expand by 2.0 percent in 2018.

CHART 66: REAL GROWTH RATE - TEXTILE

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-10.0-5.00.0

+5.0%+10.0+15.0 +9.8

+0.3 0.0 0.0 +3.0 +2.6 +4.2 +1.0 +0.8

-1.1 -2.8 -0.7

-5.8

CHART 67: TOTAL EMPLOYMENT - TEXTILE

0.0

20.0

80.0

60.0

40.0

THO

USA

ND

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

64.2 63.654.9 53.7 50.1 48.6 49.3 49.5 48.6 47.1

CHART 68: REAL GROWTH RATE - OTHER MANUFACTURING

-10.0

-5.0

0.0

5.0%

10.0

15.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-4.3-1.0

-0.2

+4.8 +4.5

+2.0 +2.1

+2.8 +1.8 +2.0

+0.6 0.0

+12.7

CHART 69: TOTAL EMPLOYMENT - OTHER MANUFACTURING

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

28.030.032.034.036.038.0

THO

USA

ND

35.8 36.2

34.8 33.8 33.3 33.3 32.731.9

33.5 34.3

Total employment in the sector was estimated at around 31,900 in 2016.

33


CHART 70: REAL GROWTH RATE - TOURISM

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-10.0

-5.00.05.0

%

10.015.0

+12.7

+1.7

4.9

+7.0

+3.2

+0.7+1.9

+6.3 +7.2

+11.5

+5.2 +4.7 +4.7

TOURIST ARRIVALS

Some 1.3 million tourists visited Mauritius in 2017, an increase of 5.2 percent from 2016. Tourist arrivals are forecast to increase to 1.4 million in 2018.

Europe is the leading market with a share of around 60 percent of total arrivals. The number of tourists from France increased by 0.5 percent, from Germany by 14.5 percent, from UK by 5.6 percent and from Italy by 12.0 percent in 2017.

Reunion and South Africa remained the main source countries in the African region, with tourist arrivals from South Africa increasing by 7.0 percent over the past year.

Among Asian countries, arrivals from India grew by 4.4 percent, while those from China dropped by 8.1 percent in 2017.

TOURISM

The tourism sector is the fourth most important contributor to the economy, accounting for 7.1 percent of GDP.

In 2017, it grew by 5.2 percent and it is forecast to grow by 4.7 percent in 2018.

CHART 71: TOTAL TOURIST ARRIVALS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

906,

971

930,

456

871,

356

934,

827

964,

642

956,

441

992,

503

1,03

8,33

4

1,15

1,25

2

1,27

5,22

7

1,34

1,86

0

1,41

0,00

0



TOURISM EARNINGS

Tourism earnings increased to Rs 60.3 billion in 2017, from Rs 55.9 billion in 2016. It is estimated at Rs 62.5 billion for 2018.

[Note: As from 2015, tourism earnings figures include data from money changers and foreign exchange dealers.]

Average expenditure per tourist increased to around Rs 44,900 in 2017 from around Rs 43,800 in 2016.

CHART 72: TOURISM EARNINGS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

40,687 41,21335,693 39,456 42,717 44,378

40,557 44,30450,191

RS

MIL

LIO

N

CHART 73: AVERAGE EXPENDITURE PER TOURIST

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

44,86044,293

40,963

42,208

44,283

45,967

40,839

42,642

43,58743,835

44,938

38,000

39,000

40,000

41,000

42,000

43,000

44,000

45,000

46,000

47,000

RS

60,26255,867

According to the Survey of Inbound Tourism carried out by Statistics Mauritius during the 1st Semester of 2017, tourists from Russia were the highest spenders followed by Switzerland, UK, China and the US.

Tourists spent some 13.6 million nights in Mauritius in 2017. The average length of stay per tourist works out to 10.3 nights. Visitors from UAE spent the most per night in Mauritius, followed by their Chinese, American and Swiss counterparts.

Some 60 percent of total expenditure was on accommodation, 12 percent on food and beverages, 9 percent on shopping, 7 percent on sightseeing and 4 percent on entertainment and recreation.

Around 60 percent of tourists travelled on a package tour (where airfare, accommodation and other items such as meals, sightseeing, car hire are included in the tour price paid before departure from the home country of the tourist) and spent some Rs 5,005 per tourist per night compared to only Rs 3,595 by those travelling on non-package tour.

Some 80 percent of total tourists stay in hotels, 8.5 percent in tourist residences, 5.5 percent with friends/relatives, and 5.3 percent in guest houses. More than 90 percent of tourists from India and the UK, and 80-90 percent of tourists from China, Germany, South Africa, Italy and Switzerland stay in hotels.

SURVEY OF INBOUND TOURISM1st Semester 2017, Statistics Mauritius

35


EMPLOYMENT

Total employment in the Accommodation and food service sector, the major component of tourism, was estimated at around 40,800 in 2016. Output per employee was around Rs 705,000 that year.

As at March 2017, it was estimated that there were 30,974 employees in large establishments in hotels, air transport services, tour operators, travel agencies and car rental, slightly higher than in 2016.

CHART 74: EMPLOYMENT IN LARGE ESTABLISHMENTS, HOTELS ANDTRAVEL & TOURISM ACTIVITIES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

26,622

29,000

27,664 27,685

28,487 28,93529,115 29,352 29,437

30,55630,974

TOURIST ACCOMMODATION

As at end December 2017, 111 hotels were operational in Mauritius and one was under renovation. The total room capacity of these hotels was 13,511 with 29,650 bed places. For the year 2017, the room occupancy rate of all hotels averaged 77 percent, up from 73 percent in 2016.

The bed occupancy rate also increased from 65 percent to 68 percent over the period.

Large hotels accounted for 51 percent of all hotels, 78 percent of total room capacity and 80 percent of total bed places.

CHART 75: OCCUPANCY RATE

ROOM OCCUPANCY RATE BED OCCUPANCY RATE

2012 20122013 20132014 20142015 20152016 20162017 2017

62%

65%

63%

65%

65%

67% 70

%

72%

73%

76% 77%

79% 70

%

68%

68%

65%

67%

63%

60%

58%

57%

55%

57%

55%

ALL HOTELS LARGE HOTELS



MODE OF TRANSPORT

CHART 76: CRUISE VESSELS AND TOURIST ARRIVALS BY SEA

20122012 2013 2014 2015 2016 20170 0

10

20

30

40

10,000

20,000

30,000

40,000

23 23 23

29 30

1815

CRUISE VESSELS (RHS)TOURIST ARRIVALS BY SEA

12,815 19,797 28,365 29,56516,93025,047 3,336

According to the Air Traffic Forecast Report 2017 of Airports of Mauritius Ltd, the total seat capacity in 2017 was 2,353,455. Air Mauritius is the largest carrier with 46.6 percent of seat capacity. The

largest foreign airline is Emirates, with 361,636 outbound seats followed by Air Austral with 10.4 percent of seat capacity.

CHART 77: SEAT CAPACITY IN MAURITIUS IN 2017

Air Mauritius 46.6%Emirates

15.5%

Others 17.6%

Air Austral 10.4%

South African Airways 4.7%

Air France 5.2%

Source: Air Traffic Forecast Report 2017, Airports of Mauritius Ltd

Ninety-eight percent of tourists travel by air to Mauritius. During the past few years, the number of tourists arriving by cruise ships has

increased significantly. In 2017, some 29,600 tourists arrived by sea.

GOLF COURSESThere are currently nine 18-hole Championship golf courses around the island, designed by world leading golfers.

GYMKHANA

PARADIS GOLF

VILLAS VALRICHES

TAMARINA GOLF ESTATE

MONT CHOISY

CONSTANCE BELLE MARE

ANAHITA ILE AUX CERFS

AVALON GOLF ESTATE

18-HOLE CHAMPIONSHIP GOLF COURSES IN MAURITIUS

37


CONSTRUCTION

In 2017, the construction industry recovered from a five-year contraction, with a growth rate of 7.5 percent. This upturn resulted mostly from higher private investment, especially in the tourism sector.

Growth in the construction sector is expected to rise further to 9.5 percent in 2018, driven mostly by investment in major public infrastructure projects.

CHART 78: REAL GROWTH RATE - CONSTRUCTION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

-10.0

-5.0

0.0

+5.0%

+10.0

+15.0

+20.0+15.7

+11.8

+5.9 +4.3

-2.0 -3.0 -4.9

0.0

+7.5 +9.5

+1.4

-8.2 -8.5

CHART 79: INVESTMENT IN CONSTRUCTION

1,0001,200

1,400

1,600

1,8002,0002,200

2,400

2,600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

RS

MIL

LIO

N

Total investment in the construction sector increased by 12.6 percent in 2017 to reach Rs 1.3

billion. It is expected to increase by 9.3 percent in 2018 to Rs 1.4 billion



Investment in building and construction work, which accounts for 63.0 percent of total investment, increased by 7.6 percent from Rs 46,408 million in

2016 to Rs 49,917 million in 2017. It is expected to increase by 12.8 percent to Rs 56,303 million in 2018.

CHART 80: INVESTMENT IN BUILDING AND CONSTRUCTION WORK

2015 2016 2017 2018F

RS

MIL

LIO

N

13,067 11,67712,287

14,199

16,078

26,026

12,802

24,828

9,872

24,859

10,726

21.925

EMPLOYMENT

Total employment in the construction sector was estimated at 39,600 in 2016.

Output per employee increased by 1.6 percent to reach Rs 404,722 in 2016.

CHART 81: TOTAL EMPLOYMENT - CONSTRUCTION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

38.0

39.0

40.0

41.0

42.0

43.0

44.0

THO

USA

ND

40.0 40.1

41.4

42.542.6 42.8 42.7

40.740.2

39.6

CHART 82: OUTPUT PER EMPLOYEE IN THE CONSTRUCTION SECTOR

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016320,000

340,000

360,000

380,000

400,000

420,000

440,000

460,000

Rs

39

RESIDENTIAL BUILDING OTHER CONSTRUCTION WORKNON-RESIDENTIAL BUILDING


FINANCIAL SERVICES

The Financial and Insurance activities sector contributes around 10.5 percent to GDP.

The sector expanded by 5.5 percent in 2017 and is expected to grow at the same rate in 2018.

The total investment in the sector amounted to Rs 2.3 billion in 2017. Some Rs 1.8 billion are expected to be invested in 2018.

CHART 83: FINANCIAL AND INSURANCE ACTIVITIES AS A % OF GDP

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F10.0

10.5

11.0

11.5

CHART 84: REAL GROWTH RATE - FINANCIAL AND INSURANCE ACTIVITIES

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

+7.6

+10.1

+4.7 +4.5+5.7 +5.7 +5.5 +5.5 +5.3 +5.7 +5.5 +5.5 +6.0

+0.0

+2.0

+4.0

+6.0%+8.0

+10.0

+12.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018f

1,000

1,500

2.000

2.500

3,000

RS

MIL

LIO

N

CHART 85: INVESTMENT IN FINANCIAL AND INSURANCE ACTIVITIES

%



CHART 86: TOTAL EMPLOYMENT - FINANCIAL AND INSURANCE ACTIVITIES

0.0

5.0

10.0

15.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

THO

USA

ND

S 9.310.6 11.3 11.9 12.2

12.6 13.1 13.5 13.5 13.5

Output per employee works out to Rs 3.5 million in 2016.

TABLE 1 : GLOBAL BUSINESS EVOLUTION

Number of Live GBCs1 Category12 Category2 MCs3 Global Funds4

Jan-13 9,660 11,207 165 860

Jan-14 9,825 10,668 171 871

Jan-15 10,306 11,011 174 883

Jan-16 10,756 10,688 180 917

Jan-17 11,067 10,283 178 929

Jan-18 11,501 10,084 182 982

1: Exclude companies Struck off / surrendered licence/ licence revoked/ Licence Lapsed or changed regime during the year 2: Include Global Funds 3: MCs Management Companies (Include Corporate Trustees as from May 2008) 4: Exclude funds in process of winding up

CHART 88: NUMBER OF LIVE GBCS

JAN- 13 JAN- 14 JAN- 15 JAN- 16 JAN- 17 JAN -18

9,500

10,50011,500

12,500

GBC (CATEGORY 1) GBC (CATEGORY 2)

2007 2008 2009 2010 2011 2012 2013 2014 2015 20162,500,000

3,000,000

3,500,000

4,000,000

RS

CHART 87: OUTPUT PER EMPLOYEE IN FINANCIAL AND INSURANCE ACTIVITIES

Source: Financial Services Commission

Source: Financial Services Commission

The Financial and Insurance activities sector employed around 13,500 workers in 2016,

representing 2.4 percent of total employment in the economy.

GLOBAL BUSINESS

The Global business sector contributed around 5.5 percent to GDP and grew by 4.5 percent in 2017. It is expected to expand at a higher rate of 4.7 percent in 2018.

Between January 2017 and 2018, the number of live global business companies Category 1 (GBC1) increased by 3.9 percent to 11,501. During the same period, the number of GBC Category 2 declined from 10,283 to 10,084.

41


EMPLOYMENT

Some 3,355 persons were employed in Management Companies in December 2016, compared to 2,987 in December 2015. Provisional

CHART 89: EMPLOYMENT IN MANAGEMENT COMPANIES

2012 2013 2014 2015 2016 2017

22862451

2724 2988

33553614

CHART 90: TOTAL GBC1 OUTWARD INVESTMENT

2012 2013 2014 2015 20160

100

200

300

USD

BIL

LIO

N

-10

10

50

70

30 %

SHARE OF INVESTMENT TO INDIA (RHS)TOTAL OF GBC 1 INVESTMENT SHARE OF INVESTMENT TO AFRICA (RHS)

In 2016, total outward investment through GBC1 entities amounted to USD 327.6 billion, out of which around 55 percent was to India. The share

of total investment into Africa increased from 8.7 percent in 2015 to 9.6 percent in 2016.

INVESTMENT

figures for 2017 indicated a further increase of 3,614 in employment.



In 2016, large establishments in the ICT sector employed around 15,390 persons, representing

4.9 percent of the total employment in large establishments nationwide.

TABLE 2: EMPLOYMENT IN LARGE ESTABLISHMENTS - ICT SECTOR

2012 2013 2014 2015 2016

Large Establishments in ICT sector 136 138 140 134 129

Employment in ICT sector 12,972 14,094 14,747 15,006 15,390

Male 7,068 7,600 7,900 8,120 8,060

Female 5,904 6,494 6,847 6,886 7,330

CHART 91: ICT AS A % OF GDP

3

4

5

6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F

ICTThe ICT sector contributes around 5 percent to GDP, on average.

CHART 92: REAL GROWTH RATE - ICT

00+2.0

+6.0+4.0

+8.0%+10.0+12.0

+16.0+14.0

+15.1

+12.4+11.7 +11.2

+9.4 +8.9

+6.9 +6.6 +7.1

+5.4 +4.4 +4.5

+9.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

Activities in the ICT sector expanded by 4.4 percent in 2017 and are expected to grow by 4.5 percent in 2018.

43


The proportion of the population aged 5 and above who can use computers reached 60.5 percent in 2016, indicating an increase of 1.7 percent compared to 2014.

Mauritius has been consistently improving its performance in the ICT sector. The International Telecommunication Union ranked Mauritius, with an ICT Development Index of 5.88, 1st in Africa and 72nd out of 176 countries worldwide in 2017.

CHART 94: ICT INFRASTRUCTURE AND ACCESS

20072006 2008 2009 2010 2011 2012 2013 2014 2015 20160

50

100

150

200

PER

100

INH

AB

ITA

NTS

FIXED TELEPHONE LINES

MOBILE CELLULAR SUBSCRIPTIONS

INTERNET SUBSCRIPTIONS

CHART 95: ICT DEVELOPMENT INDEX

2014 2015 2016 2017

5.22 5.27 5.515.88

Source: International Telecommunication Union

While the percentage of households with cellular mobile telephones increased by 2.6 percent between 2014 and 2016, the percentage of those with fixed telephones declined by 2.5 percent. The number of households with internet access increased by 11.3 percent in

2016, to reach 63.3 percent of total households.The number of mobile cellular subscriptions per 100 inhabitants went up from 139.5 in 2015 to 143.6 in 2016. This represented an increase of 2.9 percent, with 1,814,000 mobile cellular subscriptions in 2016.

CHART 93: TRADE IN ICTTRADE IN ICT SERVICES TRADE IN ICT GOODS

IMPORT EXPORT

2012 20122013 20132014 20142015 20152016 20162017 20170 0

2,000 5,000

4,000 10,000

6,000 15,000

8,000 20,000

RS

MIL

LIO

N

RS

MIL

LIO

N

In 2017, exports of ICT goods amounted to Rs 1,295 million, while imports were Rs 9,653 million. Trade in ICT goods was lower than in 2015 and 2016, mainly due to a decline in both imports

and re-exports of cellular phones. Exports of ICT services amounted to Rs 4,385 million against imports of Rs 3,523 million.



Emerging SectorsREAL ESTATE

In 2017, Real Estate activities grew by 3.3 percent and are expected to expand by 3.4 percent in 2018.

CHART 97: INVESTMENT IN REAL ESTATE ACTIVITIES

Economic Review And Outlook: Sectoral

CHART 96: REAL GROWTH RATE - REAL ESTATE ACTIVITIES

00+1.0

+3.0+2.0

+4.0%+5.0+6.0

+8.0+7.0

+4.6 +4.8+5.6

+6.2+7.1

+6.9+6.1 +5.3

+4.3 +4.1+3.3 +3.4

+5.3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F14,000

19,000

24,000

29,000

34,000

RS

MIL

LIO

N

In 2017, around 38 percent of total investment was directed towards the Real Estate sector. Investment in the sector went up by 6.3 percent

and is expected to increase by 4.7 percent to reach Rs 31,297 million in 2018.

45


It was estimated that 50 IRS, 100 RES and 67 PDS residential units were sold in 2017.

Between 2005 and 2017, total revenue from the sales of these residential units amounted to Rs 6,708 million namely Rs 2,709 million from IRS, Rs 3,023 million from RES, and Rs 976 million from PDS.

CHART 98: GROSS DIRECT INVESTMENT FLOWS IN REAL ESTATE ACTIVITIES IN 2017

CHART 99: RESIDENTIAL UNITS SOLD

0 0 0

10

20

30

40

50

60

70

80

50 50

100 100

150 150

200 200

250 250

2015 2007 2009 2011 2013 2015 2017 201720162009 2010 2011 2012 2013 2014 2015 2016 2017

67

2

100

223225

129

186

103

3950

94

198

83117

10162

4233

159

11382

20

59

229

NUMBER OF IRS UNITS SOLD NUMBER OF RES UNITS SOLD NUMBER OF PDS UNITS SOLD

CHART 100: REVENUE FROM SALES OF RESIDENTIAL UNITS

IRS SALES REVENUE RES SALES REVENUE PDS SALES REVENUE

2005-2010

2005

-201

0

2011

2012

2013

2014

2015

2016

20172011 2012 2013 2014 2015 2016 2017

0 0

0

200

400

600

800

1000

1200

1000

2000

300040005000

5000

10000

15000

20000

55.2

976.4

1,62

9

18,6

96

2,77

32,

920

3,01

3 1,55

61,

727 2,

689

1,67

1

3,70

42,

570

4,09

63,

023

3,88

12,

709

RS

MIL

LIO

N

RS

MIL

LIO

N

RS

MIL

LIO

N

20172016

Source: Economic Development Board

1. The Integrated Resort Scheme (IRS), the Real Estate Scheme (RES) and Property Development Scheme (PDS) are aimed at encouraging the acquisition of residential property in Mauritius by non-citizens.

IRS/RES/IHS/PDS1

IRS/RES/IHS/PDS 65.7%

Others 34.3%


Emerging Sectors (cont’d)

In 2017, Rs 8.8 billion of FDI were invested in Real Estate development, of which 65.7 percent went to projects under the IRS/RES/IHS/PDS Schemes.

11,0

25


PUBLIC FUNDED INSTITUTIONS PRIVATE & SELF-STUDY OVERSEAS

CHART 101: ENROLMENT IN TERTIARY EDUCATION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

15,880

9,612

9,53111,248

10,003

17,37219,882 21,766

11,661

10,90710,063

13,464

22,442 21,562

18,603 17,994

23,627

8,958 10,151

17,664

22,793 21,621

16,250

11,099 9,911

17,212

20,966

9,460

10,663

10,939

CHART 102: ENROLMENT OF INTERNATIONAL STUDENTS IN TERTIARY EDUCATION LOCALLY

2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

1000

2000

1500

500

MALE FEMALE TOTAL

2. Students on Self-study follow courses exclusively through the distance education/e-learning mode

Total enrolment in tertiary education amounted to 48,089 in 2016. Around 80 percent (38,178) were studying locally and 20 percent (9,911) overseas. Of those based locally, around 55 percent (20,966) were enrolled in public funded institutions, 32 percent (12,303) in private institutions and 13 percent (4,909) were undertaking self-study2 without going through a tertiary institution locally.

The number of foreign students in Mauritius has increased from 573 in 2007 to 1,736 in 2016.The students are mainly enrolled in medical programmes, business management, information technology, hospitality management and Law.It is estimated that an international student spends on average MUR 20,000 per month which includes tuition fees, accommodation costs and living expenses.

KNOWLEDGE CENTRE OF EXCELLENCE

TABLE 3: MAIN COUNTRIES OF ORIGIN OF INTERNATIONAL STUDENTS

Number Percentage

India 503 29.0

South Africa 231 13.3

Nigeria 146 8.4

Madagascar 122 7.0

France 110 6.3

Tanzania 82 4.7

Kenya 79 4.6

The foreign students came from 69 different countries, mainly India, South Africa, Nigeria, Madagascar, France, Tanzania and Kenya.

2. Students on Self-study follow courses exclusively through the distance education/e-learning mode


MEDICAL HUB CHART 103: MAIN AREAS OF MEDICAL TREATMENT IN 2017

General MedicalCheck ups 36%

Cardiology 17%

Cosmetic andplastic surgery 15%

General surgery 9%

Other 23%

Around 14 percent of foreign patients were from France and 16 percent from countries in the region.

CHART 105: PUBLIC & PRIVATE SECTOR HEALTH PERSONNEL IN 2016

Doctors(incl.314 Specialists)23.0%

Dentists1%

Dentists11%

Qualified Nurses

& Midwife75%

QualifiedNurses

& Midwife16%

Pharmacists 17%Pharmacists 1%

Doctors(incl.499 Specialists)56.0%

PUBLIC SECTOR SELECTED HEALTH PERSONNEL IN 2016

PRIVATE SECTOR SELECTED HEALTH PERSONNEL IN 2016

There are 5 regional hospitals and 2 district hospitals providing public healthcare services in Mauritius. In addition, there are 3 specialised hospitals for chest diseases, 1 for eye diseases, 1 for ear, nose and throat (E.N.T.) diseases, 1 psychiatric hospital and 2 Cardiac Centres.

Seventeen private health institutions are also providing health care services.

There are some 5,000 medical and paramedical personnel in the public sector and 2,900 in the private sector.

CHART 104: MAIN COUNTRIES OF ORIGIN OF MEDICAL TOURISTS IN 2017

0

5

10%

15

FRANCE SEYCHELLES COMOROS

33

MADAGASCAR

10

14


In 2017, some 11,000 foreign patients visited Mauritius for treatment compared to 18,000 in 2016. They chose Mauritius mainly for advanced treatment in cardiology, cosmetic & plastic surgery, hair grafting and fertility treatment.



CHART 103: MAIN AREAS OF MEDICAL TREATMENT IN 2017

49

RENEWABLE ENERGY

Bagasse was the main source of energy supply from the renewables.

CHART 106: RENEWABLES AS A % OF TOTAL ENERGY REQUIREMENTS

CHART 107: SOURCES OF RENEWABLES AS A % OF TOTAL LOCAL (RENEWABLES) REQUIREMENTS IN 2016

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

5

10

15

20

Fuel Wood2.8%

Hydro3.8%

Wind0.7%

Landfill Gas0.7%

Bagasse90.9%

Photovoltaic1.1%

Lorem ipsum

In 2016, around 15 percent of the total primary energy requirement was produced from local

renewable sources comprising hydro, wind, landfill gas, photovoltaic, bagasse and fuel wood.

Energy production from photovoltaic went up by 18.2 percent in 2016, from 2.2 ktoe3 to 2.6 ktoe.

Production from wind increased significantly from 0.2 ktoe to 1.5 ktoe that is around 7 folds.

3. Ktoe: thousand tonnes of oil equivalent


CREATIVE INDUSTRY

Between 2016 and 2017, the contribution to GDP of the Arts, Entertainment and Recreation sector increased from 3.0 percent to 3.1 percent .

The sector expanded by 4.7 percent in 2017 and is expected to grow by 4.8 percent in 2018.

CHART 108: ARTS, ENTERTAINMENT AND RECREATION AS A % OF GDP

CHART 109: REAL GROWTH RATE - ARTS, ENTERTAINMENT AND RECREATION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F1.50

2.00

2.50

3.00

3.50

0

+2.0

+6.0+4.0

+8.0%

+10.0+12.0+14.0

+8.1

+11.5 +10.9

+5.5+6.7 +7.7 +7.7

+6.8

+4.8 +4.7 +4.7 +4.8

+7.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

CHART 110: INVESTMENT IN ARTS, ENTERTAINMENT AND RECREATION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F400600

8001,000

1,2001,4001,6001,8002,000

RS

MIL

LIO

N

In 2017, some Rs 571 million were invested in the Arts, Entertainment and Recreation sector. In 2018, investment is expected to increase

substantially to Rs 1,785 million, mainly due to the construction of the Multi-Sport Complex at Cote d’Or.



CHART 111: TOTAL EMPLOYMENT - ARTS, ENTERTAINMENT AND RECREATION

In 2016, employment in the sector increased from around 11,600 to around 12,200 persons.

Output per employee increased from Rs 1,066,293 in 2015 to Rs 1,078,700 in 2016.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

5

10

15

THO

USA

ND

4.65.4 6.4

7.6 7.6 8.99.8 10.6 11.6 12.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016980,000

1,030,000

1,080,000

1,130,000

1,180,000

RS

CHART 112: OUTPUT PER EMPLOYEE IN ARTS, ENTERTAINMENT AND RECREATION


4. The Republic of Mauritius established that the outer edge of the continental margin in the relevant land territory in the Chagos Archipelago Region (Egmont and Diego Garcia Islands) extends beyond 200 nautical miles. As required by the United Nations Convention on the Law of the Sea (UNCLOS Article 76), Mauritius made a submission to the Commission to set out the coordinates of the outer limits of the Extended Continental Shelf (ECS).

BLUE ECONOMY Mauritius has a total maritime zone of 2.6 million km2, of which 2.3 million km2 represents the Exclusive Economic Zone. An additional

expanse of 396,000 km2 is co-managed with

the Republic of Seychelles.4


EXCLUSIVE ECONOMIC ZONE OF THE REPUBLIC OF MAURITIUS

SUBMISSION IN THE REGION OF RODRIGUES ISLAND

JOINT MANAGEMENT AREA (MAURITIUS AND SEYCHELLES EXTENDED CONTINENTAL SHELF)

PRELIMINARY INFORMATION IN THE CHAGOS ARCHIPELAGO REGION


SEAPORT

In 2017, out of the 3,184 vessels which visited Port Louis, 34 percent were fishing vessels while 17 percent were carrying containers. The share of

cruise vessels has increased by about 1 percent in 2017.

CHART 113: REAL GROWTH RATE - SEAFOOD

CHART 114: TOTAL EXPORTS AND IMPORTS OF FISH AND FISH PREPARATIONS

TABLE 4: VESSEL TRAFFIC

0

+5000

+10000

+15000

+20000

0.0

- 5.0

+5.0

+10.0

%

+15.0

+2.2

+6.8

+12.0 +11.3

-1.6

+6.4

-2.8

+9.8

+6.6+3.6 +4.0

+1.6

+5.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F AVGROWTH

07-17

2011 2012 2013 2014 2015 2016 2017

RS

MIL

LIO

N

NET EXPORTS EXPORTS (F.O.B VALUE) IMPORTS (C.I.F VALUE)

+201 +1,767 +2,719 +3,590 +3,563 +2,945+1,637

2011 2012 2013 2014 2015 2016 2017

Vessel Traffic 2,654 3,476 3,652 3,329 2,947 2,934 3,184

Containerised Vessels 543 624 669 607 568 567 538

Dry Bulk Carrriers 53 57 61 58 52 56 58

Tankers (Liquid Bulk Carriers) 74 71 70 61 78 141 115

General Bulk Vessels 13 11 5 7 103 101 100

Fishing Vessels 767 851 993 1,067 953 977 1,067

Cruise Vessels 23 23 15 18 23 28 30

Others 1,181 1,839 1,839 1,511 1,170 1,064 1,276

5. Re-exports are goods which are exported in the same condition as imported or after undergoing minor operations which leave them essentially unchanged

THE SEAFOOD SECTOR

In 2017, imports of seafood products increased year-on-year from Rs 11,132 million to Rs 12,634 million. These imports were re-exported, processed and canned for exports, and consumed locally. Total re-exports5 in 2017 were estimated

at Rs 3,503 million, while processed seafood products exported amounted to Rs 10,768 million. A net export of Rs 1,637 million in the seafood sector was recorded.

Source: Mauritius Port Authority


Total cargo traffic (both imports and exports) increased from 7.3 million tonnes in 2016 to 7.7 million tonnes in 2017.

In 2017, some 379,371 containers were handled in 2017 – 250,916 containers (TEU: 20 foot equivalent units) for imports and 128,455 for exports.

CHART 115: CARGO TRAFFIC

CHART 116: CONTAINER TRAFFIC

2011 2012 2013 2014 2015 2016 2017

0

2.0

4.0

6.0

8.0

10.0

MIL

LIO

N

TON

NES

5.4 5.9 5.7 5.7 5.7 6.0 6.4

1.31.31.11.1 1.21.1

1.1

2011 2012 2013 2014 2015 2016 2017300,000320,000340,000360,000380,000400,000420,000440,000

TEU

’S

IMPORTS EXPORTS





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