Mauritius has been a model of economic success in Africa for decades and bears the brunt of the consequences of the coronavirus pandemic. The industrial activity is experiencing a decline of 15.2%, which translates into the island’s worst economy in 40 years. This is the consequence of the containment from last year. And the reconstruction in a month should intensify this brutal economic slippage.
From our Port-Louis correspondent, Abdoollah Earally
With an economy still driven by growth since the 1980s boom, a contraction of this magnitude is a source of great concern. The reduction is estimated at 15.2%. Unmatched for 40 years, despite several economic shocks, such as the end of multi-fiber agreements in 2005 and the global financial crisis in 2008.
The Covid-19 pandemic looks like a knockout blow to a business model. Of all the industries, tourism goes through the darkest times. Before the pandemic, it represented a quarter of gross domestic product and guaranteed 125,000 direct and indirect jobs. Its operations decreased by 67%. The consequences in everyday life are unemployment which has now passed 10% and financial difficulties for three out of four families from Mauritius.
As a rescue plan, the Bank of Mauritius injected two billion dollars into the economy from the reserves it had carefully built up since the island’s independence.
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