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Mauritius economy to grow 3.5% in 2027

SBM Insights forecasts 2.9% growth this year, citing global uncertainty and local constraints.

Mauritius' economy is projected to grow by 2.9% in 2026, with a rebound to 3.5% expected in 2027, according to SBM Insights. This forecast is attributed to an uncertain international climate, geopolitical tensions, and local structural issues. Inflation, which reached 5.7% in September 2026, is expected to stabilize around 5% by year-end, though household purchasing power remains pressured by the high cost of living and production.

Key growth sectors identified include tourism, financial services, information and communication technology (ICT), and hospitality. Public and private investments in infrastructure, renewable energy, and housing are also anticipated to drive recovery. However, export-oriented manufacturing and textiles face challenges from increased international competition.

To secure medium-term growth, SBM Insights outlined six priorities: controlling the cost of living, ensuring energy access and renewable transition, fiscal consolidation, accelerating investments, diversifying growth engines, and strengthening economic resilience. The report warns that escalating Middle East conflicts or supply chain disruptions could negatively impact commodity and food prices.

Why it mattersMauritius' economy faces growth challenges and inflation pressures, impacting household purchasing power and business operations.