1. On behalf of the Mauritian authorities, we would like to thank Management and staff for the candid and constructive dialogue and invaluable technical assistance which have contributed to strengthen the authorities’ policy framework and preserve macroeconomic stability and steady growth over the years. The authorities welcome the staff report which provides a balanced assessment of the macroeconomic situation, including progress achieved to date as well as challenges and policy priorities. They also found the focus of the Selected Issues paper on savings, the financial conditions index, and structural transformation in Mauritius to be particularly relevant and informative.
2. Mauritius has embarked on an ambitious journey of structural transformation of the economy in the context of their Mauritius Vision 2030. The vision aims to boost long-term inclusive growth and ultimately reach the high-income status by 2030 by updating the country’s business model, which over the past decade focused on tourism and financial services and enabled to position Mauritius as a highly attractive and competitive touristic destination and financial hub. The new model seeks to strengthen the island’s global competitiveness and develop its innovation capacity, building on the country’s attractive traits including its political stability and strategic location between Africa and Asia.
3. The strategy underpinning this model revolves around three pillars: (i) economic diversification into high-value added services, (ii) public investment in urban and transport infrastructure, and (iii) promotion of private investment notably in new growth sectors such as ICT and the maritime or blue economy. This strategy should strengthen Mauritius’ destination for FDI, enhance its position as a financial center, and improve its position as regional logistics and transport hub. The authorities remain determined to pursue these objectives while maintaining macroeconomic stability. In implementing the strategy, the authorities will manage no efforts to address key structural bottlenecks, including the aging population, skills mismatch and declining productivity.