Key View

• We at Fitch Solutions expect that the Mauritian budget deficit will widen slightly in 2019 given rising capital spending and the likelihood that revenues will be adversely affected by weakness in some key economic sectors.
• Over our ten-year forecast period we believe that the gradual conclusion of capital projects will reduce

Key View

• We at Fitch Solutions expect that the Bank of Mauritius (BoM) will cut its key policy rate to 3.25% from 3.50% in 2019, due to rising headwinds to growth.
• Lower global oil prices and a more dovish global monetary policy globally will contribute to lower inflation, providing cover for the modest cut.
• There are risks to our view

Key View

• We at Fitch Solutions believe that the Bank of Mauritius (BoM) will keep its key policy rate of 3.50% on hold throughout 2019 amid balanced risks.
• Inflation will tick upwards as negative base effects combine with higher oil prices. We also expect that, given monetary tightening in developed markets and higher deficit financing demands

Key View

• Growth will decelerate in 2019 on the back of headwinds to the sugar and sugar processing sectors and to financial services.
• Economic expansion will be sustained by construction sector output and an uptick in output in the textiles sector.
• Over the long term, Mauritius' development as a transhipment and finance hub on China's Maritime

Key View

• The Mauritian current account deficit will narrow from an estimated 6.7% of GDP in 2018 to 6.6% in 2019, marking the start of a narrowing trend that will last for the duration of our forecast period to 2027.
• A free trade agreement with China that will boost Mauritius' re-exports and service exports is set to be ratified by 2019, while

Mauritius's pursuit of Chinese investment and a place on the 'Maritime Silk Road' will bolster inward investment and may help mitigate some of the effects of significant economic headwinds from traditional trading partners in the coming years. The process will also see a boost in grants from China's strategic rival (and Mauritius' long-time ally)