Economic growth in Mauritius has been going well for the island, both in its financial services, and its boom in the tourism industry. It appears as though it has not been affected by Brexit, which was something some experts were concerned about. The increase in consumer price index was as a result of alcohol and tobacco services.
The island does currently experience a trade deficit, but stability is in place as a result of foreign exchange reserves, which were at $5.3 billion and kept solid, from direct investment inflows.
The government is proactive in encouraging trade agreements on three different levels, such as multilateral trade agreements, regional trade agreements, and bilateral trade agreements. In the bilateral sector, the island trade partners are Pakistan, Turkey and the USA. The trade agreement with the United States was signed in September 2006 and the two countries have a trade and investment framework based upon this.
Mauritius intends on becoming a high-income country whereas currently it is classified in the upper-middle-income bracket. The unemployment rate hovers at around 6.9%.
Employment by sectors is 7.3% In agriculture. with industry at 26% and services at 66.7%. The labour force as of 2015 comprised 610,400 people.
International Trade in Services
The island has noted that there have been some dramatic changes in the last several years. This has been taking place with a decline in the agricultural industry and a dramatic increase in manufacturing and services. As a result, sugar trade has been reduced, but the increased growth in the services sector is being given the credit for raising the classification of the country from low income to middle income.
There is good reason many countries are comfortable entering into trade agreements with Mauritius as this island has been a prime example of being able to create economic growth.