Summary by Kelvin Mupungu
The mission met with The Honorable Prime Minister Dr. Navin Ramgoolam, Vice Prime Minister and Minister of Finance and Economic Development Xavier-Luc Duval, Governor of the Bank of Mauritius Rundheersing Bheenick, other senior government officials, as well as representatives of the National Assembly, the private sector, and civil society.
Following this working visit, IMF Head of Mission Mr Petri concluded that:
- The authorities maintained a stable macroeconomic environment in 2013, despite difficult external developments.
- The fiscal deficit rose in part because of spending in response to the March flash floods and larger than expected capital spending.
- Inflation fell to low levels.
- IMF team does not mention current inflation rate but http://www.tradingeconomics.com imply inflation rate in Mauritius was recorded at 3.70 percent in January of 2014. Inflation Rate in Mauritius is reported by the Central Statistics Office, Mauritius. Inflation Rate in Mauritius averaged 6.79 Percent from 1988 until 2014, reaching an all time high of 18.10 Percent in April of 1989 and a record low of -1 Percent in January of 1992. In Mauritius, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods.
- The challenges in 2014 are to:
- start reducing public debt through a smooth medium-term fiscal consolidation path;
- improve the monetary policy transmission mechanism by removing excess reserves;
- pursue public sector reforms while protecting the poor; and
- address productivity and competitiveness challenges needed to raise medium-term economic growth prospects.
Please see full text -http://www.tradingeconomics.com/mauritius/inflation-cpi