The Mauritius economic forecast for 2025–2027 shows a period of moderate but steady growth following the post-pandemic rebound.
According to the World Bank’s October 2025 Macro Poverty Outlook, Mauritius GDP(Gross Domestic Product; It is the total value of the goods and services produced in a country during a specific period of time, usually a year) growth 2025 is expected to slow from 4.7% in 2024 to 3.0% in 2025, before stabilizing around 3.4% in 2026–2027.
Despite the slowdown, the outlook remains positive, supported by ongoing fiscal reforms, investment opportunities, and steady improvements in social indicators.
Mauritius, home to around 1.3 million people, has a diverse economy built on tourism, manufacturing, financial services, and fisheries.
The country briefly achieved high-income status in 2020 but lost it during the COVID-19 pandemic. Regaining this status will require deep reforms that strengthen productivity and build climate resilience.
Key figures for 2024:
However, several challenges remain:
Economic growth in 2024 was mainly supported by the construction and financial services sectors. However, the expansion slowed after the completion of large infrastructure projects and weaker foreign investment flows.
Tourism, a key driver of jobs and foreign exchange, grew modestly by 3% in mid-2025. Export growth was weaker due to reduced demand from traditional markets like Europe and the United States, although African markets helped sustain overall export earnings.
To manage inflation, the Bank of Mauritius raised its policy rate to 4.5% in February 2025. Inflation stood at 5.2% in July 2025, mainly due to higher excise taxes on alcohol and tobacco.
Employment remained relatively stable at 94%, but both total employment and labor participation fell by about 2%.
The government is pursuing fiscal consolidation to bring down public debt, which reached 86% of GDP by mid-2025.
The Financial Year 2025/26 national budget introduced several key measures:
These actions aim to reduce the fiscal deficit from 8.2% of GDP in 2025 to around 4.4% by 2027.
Revenue from Chagos Archipelago leases, once formalized, may further help reduce the deficit.
The Mauritius economic forecast projects GDP growth to stabilize at 3.4% in 2026–2027, driven by recovering household consumption, moderate export growth, and increased private investment.
Inflation is expected to average 3.6%, within the central bank’s target range.
On the social side, the poverty rate (based on US$8.30/day) is expected to fall from 13% in 2025 to 11% in 2027, helping around 29,000 Mauritians move out of poverty.
Strong social assistance programs—equivalent to about 7% of GDP—will continue supporting vulnerable households.
However, income inequality remains a concern, reflected in a Gini index of 37%.
Low female labor participation (47%) and youth unemployment (17%) are also ongoing challenges to inclusive growth.
The outlook faces several downside risks:
At the same time, there are strong opportunities:
These areas can open new doors for private-sector growth and job creation, aligning with Mauritius’s long-term sustainable development goals.
| Indicator | 2025 | 2026 | 2027 |
|---|---|---|---|
| Real GDP Growth (%) | 3.0 | 3.4 | 3.4 |
| Inflation (%) | 3.6 | 3.6 | 3.5 |
| Fiscal Deficit (% of GDP) | -8.2 | -5.8 | -4.3 |
| Debt (% of GDP) | 86.7 | 84.2 | 82.3 |
| Poverty Rate (% of population) | 13.3 | 12.2 | 11.0 |
| Employment Rate (%) | 53.7 | 54.2 | 54.3 |
Mauritius’s journey to regain high-income status depends on its ability to maintain fiscal stability, reduce debt, and promote inclusive economic growth.
The Mauritius economic forecast shows promising long-term prospects, particularly in renewable energy, sustainable tourism, and climate-resilient infrastructure—key sectors that can attract new investors and create jobs.
Now is the time for both business leaders and policymakers to collaborate on innovation and green economic transformation, ensuring that Mauritius GDP growth 2025–2027 remains sustainable and beneficial for all.
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