Mauritius sees its total investment dipped by 4.9% in 2014
This year, total investment felt a continuous decline of 4.9 % after the 3.3% fall in 2013 as well as the investment rate, which is defined as the ratio of investment to Gross Domestic Product (GDP) at market prices, declined to 19.4% in 2014, from 21.2% in 2013. (Image: West Island Resort)
The National Accounts Estimates announced that total investment dropped further by 4.9% and growth rate for 2014 remained same as in September 2014 that is at 3.5%, according to data published on Statistics Mauritius for the December 2014 issue.
Another economic indicator, which continues to deteriorate, is the Gross Domestic Saving (GDS) as a percentage of GDP at market prices for 2014 working out to 11.6 compared to 11.8 in 2013.
This year, total investment felt a continuous decline of 4.9 % after the 3.3% fall in 2013 as well as the investment rate, which is defined as the ratio of investment to Gross Domestic Product (GDP) at market prices, declined to 19.4% in 2014, from 21.2% in 2013.
This year, private sector investment recorded a further decline of 7.4 %, following the negative growth of 2.8% in 2013.
On the contrary, public sector investment rebounded by 3.1% in 2014 after falling 4.9% last year.
Based on the trends during this year, the share of private sector investment in total investment decreased to 74.4% from 76.4% in 2013 while that of the public sector increased to 25.6% from 23.6%.
Concerning the primary sector, its activities, which are mainly related to “Agriculture”, grew by 4.5% in 2014 after stagnating in 2013 while activities in the secondary sector knew a growth of 0.3% in 2014 compared to 0.8% in 2013 with manufacturing grew by 2.1%, lower than the 4.4% growth in 2013.
The tertiary sector has experienced this year a slight increase with a growth 4.6%, higher than the 4.3% growth in 2013.
Final consumption expenditure of households and government grew by 3.0% in 2014, higher than the 2.3% in 2013, mainly explained by higher government final consumption expenditure.
“Forecast of 2015 will be released in the next issue of Economic and Social Indicators on National Accounts, pending policy measures to be announced in Government budget in March 2015,” Statistics Mauritius ended.
Therefore, one of the main challenges to be addressed by the Minister of Finance and Economic Development, Vishnu Lutchmeenaraidoo in the next budget, is to create the conditions for a resumption of investment.