food processing (largely sugar milling), textiles, clothing, mining, rum distilling and chemicals, metal products, transport equipment, nonelectrical machinery, tourism
All values, unless otherwise stated, are in US dollars.
The economy of Mauritius is a mixed developing economy based on agriculture, exports, financial services, and tourism.[14] Since the 1980s, the government of Mauritius has sought to diversify the country's economy beyond its dependence on just agriculture, particularly sugar production.[15]
In 1961, Professor James Meade painted a bleak picture of the economic prospects of Mauritius, which then had a population of 650,000. All the disadvantages associated with smallness of island states weighed heavily in his conviction that Mauritius was caught in a Malthusian trap and, therefore, if economic progress could at all be achieved, it would be to a very limited extent.[citation needed] Since independence in 1968, Mauritius has developed from a low-income, agriculturally based economy to an upper-middle income[2] diversified economy with growing industrial, financial, ICT and tourist sectors. For most of the period, annual growth has been roughly 4%. This compares very favorably with other sub-Saharan African countries and is largely due to sustained progress in economic conditions; between 1977 and 2008, growth averaged 4.6% compared with a 2.9% average in sub-Saharan Africa.[16] Also important is that it has achieved what few fast growing economies achieve, a more equitable income distribution and inequality (as measured by the Gini coefficient) fell from 45.7 to 38.9 between 1980 and 2006.[16] This remarkable achievement has been reflected in increased life expectancy, lowered infant mortality, and a much-improved infrastructure. Sugarcane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings.[citation needed] The government's development strategy centers on expanding local financial institutions and building a domestic information telecommunications industry. Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over $1 billion. Mauritius, with its strong textile sector, has been well poised to take advantage of the Africa Growth and Opportunity Act (AGOA).[citation needed]
With a well-developed legal and commercial infrastructure and a tradition of entrepreneurship and representative government, Mauritius is one of the developing world's most successful democracies. The economy has shown a considerable degree of resilience, and an environment already conducive to dynamic entrepreneurial activity has moved further toward economic freedom. The island's institutional advantages are noticeable. A transparent and well-defined investment code and legal system have made the foreign investment climate in Mauritius one of the best in the region.[citation needed] Taxation is competitive and efficient. The economy is increasingly diversified, with significant private-sector activity in sugar, tourism, economic processing zones, and financial services, particularly in offshore enterprises.[citation needed] The government is trying to modernize the sugar and textile industries, which in the past were overly dependent on trade preferences, while promoting diversification into such areas as information and communications technology, financial and business services, seafood processing and exports, and free trade zones. Agriculture and industry have become less important to the economy, and services, especially tourism, accounted for over 72 percent of GDP.[when?] The government still owns utilities and controls imports of rice, flour, petroleum products, and cement.[citation needed]
History
The Mauritian economy has undergone remarkable transformations since independence.[17] From a poor country with high unemployment exporting mainly sugar and buffeted by the vagaries of world demand, Mauritius has become relatively prosperous and diverse, although not without problems.[17]
The 1970s were marked by a strong government commitment to diversify the economy and to provide more high-paying jobs to the population.[17] The promotion of tourism and the creation of the EPZs did much to attain these goals.[17] Between 1971 and 1977, about 64,000 jobs were created.[17] However, in the rush to make work, the government allowed EPZ firms to deny their workers fair wages, the right to organize and strike, and the health and social benefits afforded other Mauritian workers.[17] The boom in the mid-1970s was also fueled by increased foreign aid and exceptional sugar crops, coupled with high world prices.[17]
The economic situation deteriorated in the late 1970s.[17] Petroleum prices rose, the sugar boom ended, and the balance of payments deficit steadily rose as imports outpaced exports; by 1979 the deficit amounted to a staggering US$111 million.[17] Mauritius approached the IMF and the World Bank for assistance.[17] In exchange for loans and credits to help pay for imports, the government agreed to institute certain measures, including cutting food subsidies, devaluing the currency, and limiting government wage increases.[17]
By the 1980s, thanks to a widespread political consensus on broad policy measures, the economy experienced steady growth, declining inflation, high employment, and increased domestic savings.[17] The EPZ with investment principally from China, Hong Kong and Taiwan, and came into its own, surpassing sugar as the principal export-earning sector and employing more workers than the sugar industry and the government combined, previously the two largest employers.[17] In 1986 Mauritius had its first trade surplus in twelve years.[17] Tourism also boomed, with a concomitant expansion in the number of hotel beds and air flights.[17] An aura of optimism accompanied the country's economic success and prompted comparisons with other Asian countries that had dynamic economies, including Hong Kong, Singapore, Taiwan, and South Korea.[17]
The economy had slowed down by the late 1980s and early 1990s, but the government was optimistic that it could ensure the long-term prosperity of the country by drawing up and implementing prudent development plans.[17] A stock exchange opened in Port Louis in 1989.[17] As of 1993, Mauritius had a gross domestic product (GDP) estimated at US$8.6 billion, with a growth rate of 5.5 percent, and an inflation rate of 10.5 percent.[17]
Policies for success
Recent reports on progress on the Millennium Development Goals by the Overseas Development Institute indicated four key reasons for economic success.[16]
Heterodox liberalisation and diversification
Concerted strategy of nation building
Strong and inclusive institutions
High levels of equitable public investment
Heterodox liberalisation and diversification
Mauritius has followed a pragmatic development strategy in which liberalisation process was sequenced and tailored to its competitive advantages and weaknesses.[16] The export-orientated approach has encouraged liberalisation supported by strong state involvement as a facilitator (of the enabling environment for the private sector); as operator (to encourage competition); and as regulator (to protect the economy as well as vulnerable groups and sectors from shocks).[16] Strategies were evidence-based and adapted according to results.[16] There has been consistency and stability, regardless of which political party is in power.[16]
Liberalisation occurred in phases that were initiated to build on advantages the economy enjoyed on the international market.[16]
1970s: Mauritius profited from sugar rents, established an export processing zone EPZ and successfully attracted capital and foreign investment in manufacturing, from China, Hong Kong and Taiwan.
1980s–1990s: EPZ expanded and led to a significant increase in foreign direct investment (FDI) and tourism. Preferential access to sugar and clothing markets amounted to 7% of GDP in the 1980s and 4.5% in the 1990s, capital and current accounts were liberalised, contributing to an investment and employment boom and the high inflow of FDI brought with it managerial skills.
1990s–2010: Further diversification, liberalisation and investment as Chinese investors left to pursue investments in Africa and China.
Concerted strategy of nation building
A concerted strategy of nation building since Independence created the foundations for sustained growth.[16] Partnerships across ethnic groups allowed economic redistribution to be negotiated and the resulting better balance of economic and political power allowed strong and independent institutions.[16] The emerging political system encouraged a consultative approach to policy formation that allowed strategies for growth to be continued regardless of changes in the parties in power.[16]
Strong and inclusive institutions
Strong institutions are critical in ensuring country's competitiveness, economic resilience and stability.[16] They have supported development strategies and ensured that export earnings are reinvested in strategic and productive sectors. In the financial sector, they have built a regulated and well-capitalised banking and financial system that protected it from toxic assets prior to the 2007–2008 financial crisis.[16]
Corruption laws
In 2002, the government adopted the Prevention of Corruption Act, which led to the setting up of an Independent Commission Against Corruption (ICAC) a few months later. The ICAC has the power to detect and investigate corruption and money-laundering offenses and can also confiscate the proceeds of corruption and money laundering. Corruption is not seen as an obstacle to foreign direct investment. Mauritius ranks 55th out of 168 countries in Transparency International’s Corruption Perceptions Index for 2023.
High levels of equitable public investment
Mauritius has a strong human capital foundation developed through consistent and equitable investment in human development.[16] This enabled Mauritius to exploit advantages, learn from expertise brought in through FDI and maintain competitiveness in a fast evolving international market.[16] Education and health services are free and have been expanded in recent years, in order to create further employment opportunities and ensuring inclusive growth. The educated and adaptable workforce were essential elements of 1980s export-orientated growth.[16] Around 90% of entrepreneurs in the export processing zone (EPZ) and in the manufacturing sector were eventually Mauritian nationals, businesspeople had the human capital, education and knowledge needed to exploit market opportunities.[16] According to the Government of Mauritius the general outlook for the manufacturing sector is positive, as the country offers many opportunities to entrepreneurs across the various value chains but insufficient skilled labour and limited research and development will remain impediments to potentially higher growth in this sector.[18]
Financial services
Mauritius provides an environment for banks, insurance and reinsurance companies, captive insurance managers, trading companies, ship owners or managers, fund managers and professionals to conduct their international business. The economic success achieved in the 1980s engendered the rapid growth of the financial services sector in Mauritius. The following types of offshore activities can be conducted in Mauritius:
Offshore Banking
Offshore Insurance
Offshore Funds Management
International Financial Services
Operational Headquarters
International Consultancy Services
Shipping and Ship Management
Aircraft Financing and Leasing
International Licensing and Franchising
International Data Processing and Information Technology Services
Offshore Pension Funds
International Trading
International Assets Management
Information and communication technology
Since 2002, Mauritius has invested heavily into the development of a hub in information and communication technology (ICT). The contribution of the ICT sector accounts for 5.7% of the GDP.[19] The ICT Sector employs 15,390 people.[19]
Exchange rates: Mauritian rupees per US dollar – 30.12 (26 March 2014), 30.99 (1 February 2010), 32.86 (2006), 29.14 (2005), 27.50 (2004), 27.90 (2003), 29.96 (2002), 29.13 (2001)
Climate change and the economy
Mauritius faces significant environmental challenges such as flash floods and coastal erosion, which have substantial economic implications. In June 2024, the government announced plans to introduce a 2% climate levy on company profits to finance projects that combat climate change and restore the natural ecosystem. Companies with sales of less than 50 million rupees ($1.06 million) will be exempt from this levy. The proceeds from this corporate responsibility levy will be used to support national initiatives to protect, manage, invest in, and restore the country's natural ecosystem and combat the effects of climate change. The nation of 1.26 million people is experiencing more climate change-related events and needs to mobilize 300 billion rupees to meet its adaptation and mitigation goals.[20]
In 2024, flash floods brought the capital, Port Louis, to a halt, causing significant disruptions in banking and market activities. Tourism, a crucial source of foreign currency for Mauritius, is expected to generate over $2 billion in earnings from visitors this year. However, more than 37 kilometers (23 miles) of the coastline have been affected by erosion, posing a threat to this vital industry. In response, the government has allocated 3.2 billion rupees to the new climate fund, which will be used to rehabilitate approximately 26 kilometers of shoreline and 30 degraded sites. For the fiscal year ending in June 2025, Mauritius' government expenditure is projected to rise by 17% to 237.3 billion rupees, with revenue expected to grow by 20% to 210.5 billion rupees. This will narrow the fiscal gap to 3.4% of GDP from 3.9% in 2024. Borrowing requirements will increase to 38 billion rupees from 30.7 billion rupees, including 14 billion rupees in foreign financing. Despite higher borrowing, public debt as a percentage of GDP is projected to decrease to 71.5% from 74.5% in 2024, though in absolute terms, it will rise to 567.49 billion rupees from 524.6 billion rupees. Additionally, a government-support agreement is expected to unlock over 15 billion rupees in private-sector investment in renewable energy projects, demonstrating the government's commitment to sustainable development and economic resilience.[20]
The economy of Cambodia currently follows an open market system and has seen rapid economic progress in the last decade. Cambodia had a gross domestic product (GDP) of $28.54 billion in 2022. Per capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas. The service sector is heavily concentrated on trading activities and catering-related services. Recently, Cambodia has reported that oil and natural gas reserves have been found off-shore.
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados with an estimated annual per capita income of just $529 as measured nominally in 2024.
The economy of Gabon is characterized by strong links with France, large foreign investments, dependence on skilled foreign labor, and decline of agriculture. Gabon on paper enjoys a per capita income four times that of most nations of Africa, but its reliance on resource extraction industry fail to release much of the population from extreme poverty, as much of 30% of the population lives under the poverty threshold.
The economy of Kazakhstan is the largest in Central Asia in both absolute and per capita terms. As of 2023, Kazakhstan attracted more than US$370 billion of foreign investments since becoming an independent republic after the dissolution of the former Soviet Union.
The economy of Liberia is extremely underdeveloped, with only $3.222 billion by gross domestic product as of 2019, largely due to the First (1989–1996) and Second Liberian Civil War (1999–2003). Liberia itself is one of the poorest and least developed countries in the world, according to the United Nations.
The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries and poorest countries. Approximately 50% of the population lives below the national poverty line, with 25% living in extreme poverty.
The economy of Morocco is considered relatively liberal, governed by the law of supply and demand. Since 1993, in line with many Western world changes, Morocco has followed a policy of privatisation. Morocco has become a major player in African economic affairs, and is the 6th largest African economy by GDP (PPP). The World Economic Forum placed Morocco as the most competitive economy in North Africa, in its African Competitiveness Report 2014–2015.
The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second least developed in the Americas by nominal GDP, behind only Haiti. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry. Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011. Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%. In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively. Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.
The economy of Pakistan is categorized as a developing economy. It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).
The economy of Qatar is one of the highest in the world based on GDP per capita, ranking generally among the top ten richest countries on world rankings for 2015 and 2016 data compiled by the World Bank, the United Nations, and the International Monetary Fund (IMF). The country's economy has grown despite sanctions by its neighbors, Saudi Arabia and the United Arab Emirates. Mainly because the country exports primarily to Japan, South Korea, India and China, making the sanctions effectively redundant as neither Saudi Arabia nor the United Arab Emirates have imposed trading penalties such as tariffs or embargoes on any of these countries for trading with Qatar, or offering incentives such as discounts for their own energy exports to reduce Qatari exports.
The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
The economy of Seychelles is based on fishing, tourism, processing of coconuts and vanilla, coir rope, boat building, printing, furniture and beverages. Agricultural products include cinnamon, sweet potatoes, cassava (tapioca), bananas, poultry and tuna.
The economy of Tunisia is in the process of being liberalized after decades of heavy state direction and participation in the country's economy. Prudent economic and fiscal planning has resulted in moderate but sustained growth for over a decade. Tunisia's economic growth historically has depended on oil, phosphates, agri-food products, car parts manufacturing, and tourism. In the World Economic Forum Global Competitiveness Report for 2015–2016, Tunisia ranks in 92nd place.
The economy of Guyana is one of the fastest growing economies in the world with a gross domestic product (GDP) growth of 19.9% in 2021. In 2024, Guyana had a per capita gross domestic product of Int$80,137 and an average GDP growth of 4.2% over the previous decade. Guyana's economy was transformed in 2015 with the discovery of an offshore oil field in the country's waters about 190 km from Georgetown, making the first commercial-grade crude oil draw in December 2019, sending it abroad for refining.
The economy of Bahrain is heavily dependent upon oil and gas. The Bahraini Dinar is the second-highest-valued currency unit in the world. Since the late 20th century, Bahrain has heavily invested in the banking and tourism sectors. The country's capital, Manama is home to many large financial structures. Bahrain's finance industry is very successful. In 2008, Bahrain was named the world's fastest growing financial center by the City of London's Global Financial Centres Index. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminium is the second most exported product, followed by finance and construction materials.
The economy of Bangladesh is a major developing mixed economy. As the second-largest economy in South Asia, Bangladesh's economy is the 35th largest in the world in nominal terms, and 25th largest by purchasing power parity. Bangladesh is seen by various financial institutions as one of the Next Eleven. It has been transitioning from being a frontier market into an emerging market. Bangladesh is a member of the South Asian Free Trade Area and the World Trade Organization. In fiscal year 2021–2022, Bangladesh registered a GDP growth rate of 7.2% after the global pandemic. Bangladesh is one of the fastest growing economies in the world.
Since the island country's independence in 1966, the economy of Barbados has been transformed from a low-income economy dependent upon sugar production into a high-income economy based on tourism and the offshore sector. Barbados went into a deep recession in the 1990s after 3 years of steady decline brought on by fundamental macroeconomic imbalances. After a painful re-adjustment process, the economy began to grow again in 1993. Growth rates have averaged between 3%–5% since then. The country's three main economic drivers are: tourism, the international business sector, and foreign direct-investment. These are supported in part by Barbados operating as a service-driven economy and an international business centre.
Clothing production is an important industry in Mauritius. Clothes are imported and exported in Mauritius. The clothing sector was on the verge of bankruptcy in 2008, but recovered. The sector employed 67,174 people in 2007 and made 1.45 billion dollars in revenue that same year.
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. The economy grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before. Real GDP growth is expected to average 6.5% in 2024–25.
The economy of Algeria deals with Algeria's current and structural economic situation. Since independence in 1962, Algeria has launched major economic projects to build up a dense industrial base. However, despite these major achievements, the Algerian economy has gone through various stages of turbulence.
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1,266,060 (2021) [3] 
8.6% (2020) [13] 
−$875 million (2017 est.) [6] 
64% of GDP (2017 est.) [6] 
