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IMF forecasts growth of 4.9 % in 2024

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IMF forecasts growth of 4.9 % in 2024

Stable economic growth this year

The International Monetary Fund (IMF), in the April 2024 World Economic Outlook, has retained its growth projection for Mauritius at 4.9 % for the year 2024. However, there has been an upward revision in the IMF’s inflation forecasts, with a rate of 5.1 % anticipated for 2024, as opposed to the initial forecast of 4.9 %.

The IMF’s latest World Economic Outlook projects stable economic growth of 3.2 % for both 2024 and 2025, mirroring 2023 figures. However, a decline to 3.1 % growth is expected over the subsequent five years, marking the lowest level in decades. Global inflation is forecasted to gradually decrease from 6.8 % in 2023 to 5.9 % in 2024, further dropping to 4.5 % in 2025. Developed economies are anticipated to return to their targeted inflation levels faster than emerging and developing economies.

The report underscores several concerns, including persistent inflationary pressures, geopolitical tensions, and challenges faced by China and other major emerging economies. Conversely, more flexible fiscal policies, reduced inflation, and advancements in artificial intelligence are identified as potential drivers of growth.

Despite this somewhat optimistic outlook, the IMF projects global growth of only 3.1 % over the next five years, attributed to declining productivity and escalating geopolitical fragmentation. To foster sustainable economic growth and stability in Mauritius, attracting reliable foreign investment will be imperative.

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