Minister of Finance Xavier Luc Duval says the major areas of the Mauritian allowance of next year’s budget will have to consider gross economic slowdown in Europe

Minister of Finance Xavier Luc Duval articulated  that the major areas of the Mauritian allowance of next years budget will have to consider gross economic slowdown in Europe, as the island republic come to terms with a slowing tourism sector. Minister Duval highlighted areas of concern that may lead to further slowdown in key industries ,with falling tourist numbers hitting the hip pocket of Mauritius, budgetary adjustments will have to be made he iterated.

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The budget will aim on accompanying development, paid work, productivity and competitiveness in the region and domestically, articulated the Vice-Prime Minister and Minister of Finance and Economic Development, Mr Xavier-Luc Duval, at a press conference in Port Louis

“In the awakening of the power move from the West to the East resulting from the Euro zone urgent situation, Mauritius should do well in this transition, said the Vice-Prime Minister”. He further added that budget of  2013 will be equipped in the direction of helping the country to go forward from the new financial countryside.

The main points of the 2013 allowance will be: ensuring efficent and careful macroeconomic administration; carrying development and employment with a special vigilance to the youth; encouraging more buying into to support the finances in the long run; reinforcing the defence of vulnerable persons; improving service consignment in the public sector; and maintaining financial resilience to the current financial urgent situation.

Commenting on the growth rate for the year 2012, Mr Duval pointed out that despite the vulnerability of the Mauritian economy which is almost solely reliant on  the international financial situation, especially in Europe, Mauritius has maintained its resilience with a projected development rate of 3.4% according to the outlook of the worldwide Monetary Fund (IMF). However he worried that Mauritius is  thus far registering a growth rate of 1.7%, which is the inferior case scenario as projected by the IMF.

According to Mr Duval the main financial signs for the year 2012 demonstrate that the economic position is steady though the country is highly exposed to the consequences of the international economic crisis.

Recent unemployment rate stands at 8%, a  shortfall of 3%, and Foreign Direct buying into has noted a 20% leap for the first 6 months. personal buying  has shown a decline of 3.3% while investment in the public sector amounted to Rs 20 billion for the identical period. Inflation stands at 4.5% while public debt is a staggering 55 percent.

Recently the Mauritain economy has glimpsed a pointed worsening in the tourism commerce largely revealed by falling toursist figures mainly from France and western Europe .As to the contruction sector who is seeing the robust heaviness on its shoulders as the homeland grapples with being a knowledge economy via the the IT sector and financial services industry.

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