Mauritius is an island state of about 1.25 million people (2021) located off the southeast coast of Africa, neighboring the French island of La Reunion. The country’s economy has made great strides since independence in 1968 and is now classified as an upper-middle-income economy. Its key challenges include managing the transition to a knowledge-based economy and adapting to the impact of climate change.
Mauritius is a multi-party, parliamentary democracy. Shifting coalitions are a feature of politics in the country. The President is the head of state, while the Prime Minister has full executive powers and heads the government. General elections were held in November 2019. The result was a victory for the Mauritian Alliance—a coalition of the Militant Socialist Movement (MSM), Muvman Liberater, Alan Ganoo Movement, and Plateforme Militante—which won 42 of the 70 seats. Pravind Jugnauth of the MSM remained Prime Minister. The next elections are scheduled for 2024.
While the Prime Minister’s coalition enjoys enough of a majority to marshal its legislative agenda without the opposition, unity among a once divided opposition seems to be emerging. A meeting of the country's opposition was held in August 2022 to discuss the possibility of forming an opposition alliance, although such an alliance is not expected to result in major political turmoil for the ruling coalition.
Mauritius became a high-income country in July 2020 (based on 2019 data). However, the impact of the COVID-19 pandemic meant it slipped back into upper-middle-income status in 202. Despite its successful handling of the public health emergency, the economic impact was severe, and GDP contracted by 14.9% in 2020.
Driven mainly by recovery in the tourism sector and a successful COVID-19 vaccination campaign, Mauritius’s real GDP growth is expected to accelerate to 5.8% in 2022. During the second half of 2021, a sharp rise in prices drove its inflation rate up to 4%. The situation continues in 2022, with sharp increases in the prices of food and fuel pushing inflation to 9.5% from January to April. Inflation is forecast to average 10.5% in 2022.
Last Updated: Oct 07, 2022