Mauritius slashes growth rate from 3.3% to 3.2%
The construction sector in Mauritius is expected to decline further by 9.4%, after contraction of 3.0% in 2012 (Source: business.mega.mu)
Mauritius’ economy is expected to grow 3.2% in 2013, slightly lower than the 3.3% forecast in June 2013, according to data released by Statistics Mauritius.
The main rationale that the statistics division of the Ministry of Finance gave for the slight drop in forecast was the more-than-expected decline in construction. The sector is expected to decline further by 9.4% after the contraction of 3.0% in 2012. The further fall in the sector’s growth projection can be explained largely by a higher base in 2012 due to completion of major projects such as airport extension and shopping complex in that year, coupled with delays in some major private construction projects, which were expected to be completed in 2013 but may wind into the next financial year.
Coming to the other sectors, information and communication are also expected to weigh down economic growth, with a forecast growth of 7.7%, lower than the 8.6% growth achieved in 2012. Finally, financial and insurance activities are also likely to take the low road with projected growth of 5.3% compared to the actual growth of 5.7% in 2012.
On the positive side, sugar production is expected to remain the mainstay of the sector with a forecast of around 420,000 tonnes, resulting in a growth of 2.0% compared to a contraction of 7.3% in 2012. Further, manufacturing is also expected to buoy up the economy by expanding 2.7%, higher than the 2.2% growth in 2012. Finally, accommodation and food service activities are expected to display a growth of 2.5% based on a forecast of 990,000 tourist arrivals in 2013 compared to 965,441 in 2012. Tourist earnings are forecasted at R 45.1 billion compared to R 44.4 billion in 2012.
Source: Statistics Mauritius