In a statement published on its official website on 26 July 2024, Moody’s affirms Mauritius’ long-term foreign and local currency issuer ratings at Baa3 and maintained the stable outlook.

This affirmation balances the high growth rates of the country and its political stability against elevated debt burden and the economy’s relatively small size compared to its peers.  Through the government’s sound policymaking, the country has minimized long term impact of external shocks on the economy.  Its sizeable international reserves have also helped in mitigating external vulnerabilities.

Mauritius has witnessed high real GDP growth since 2022, experiencing growths of 8.9% and 7% growth in 2022 and 2023 respectively.  Moody’s forecasts growth of 5.9% in 2024 which is still above the country’s pre-pandemic levels.  Foreign Direct Investment into the country peaked to record levels in 2023, representing around 6% of GDP and was mostly focused on investment in real estate projects.  On the other hand, fiscal deficit dwindled from 5.5% of GDP in 2022 to 3.9% in 2024.

Based on the above economic pointers and taking into account that the Mauritius remains quite vulnerable to external shocks given its substantial reliance on tourism and financial services, Moody’s maintained the rating of Mauritius.  It will be recalled that in July 2023, Moody’s upgraded Mauritius to Baa1 – Baa3 (previously: Baa3 – Ba2) based on the economic growth achieved by the country in 2022 as well as an improved fiscal consolidation.

For more information, please visit the Moody’s website by clicking HERE