Download I - Bank of Mauritius

I
NATIONAL INCOME AND
PRODUCTION
Despite a high degree of uncertainty surrounding the global economic environment
throughout 2001, the Mauritian economy held up quite well, growing by 5.8 per cent
compared to 8.9 per cent in 2000. Excluding the sugar sector, economic growth stood at 5.4
per cent in 2001 compared to 7.2 per cent in 2000. The major sectors of the economy
performed satisfactorily, registering positive growth rates. The implementation of the Sugar
Sector Strategic Plan is well under way and many employees of the sugar industry have
already opted for voluntary retirement.
There was a slowdown in real consumption,
reflecting the deceleration in the growth rates of both household and government
consumption in 2001. Inclusive of the purchase of aircraft and marine vessel, investment
grew, in real terms, by 3.3 percent in 2001 in contrast to a contraction of 8.2 per cent in 2000.
However, excluding the purchase of aircraft and marine vessel, investment in 2001
contracted by 2.0 per cent in real terms.
With nominal income growing faster than
consumption, savings went up and exceeded investment in 2001.
The financial services, agricultural, manufacturing and tourism sectors grew by 13.6
per cent, 8.1 per cent, 4.3 per cent and 1.0 per cent, respectively, in 2001. The sugar sector
expanded by 13.4 per cent with sugar production amounting to 645,598 tonnes, its highest
level since 1987. Gross tourism earnings reached Rs18.2 billion and the number of tourists
visiting Mauritius exceeded 660,000. The EPZ sector recorded a growth rate of 4.0 per cent
in 2001. In absolute terms, Gross Domestic Product (GDP) at basic prices grew from
Rs104,271 million in 2000 to Rs117,225 million in 2001. Per capita Gross National Income
(GNI) at market prices increased from Rs99,651 in 2000 to Rs110,254 in 2001. In US dollar
terms, per capita GNI stood at US$3,768 in 2001 compared to US$3,772 in 2000.
Despite the weak external economic environment, exports of goods and services
increased, in nominal terms, from Rs73,841 million in 2000 to Rs89,373 million in 2001, or
21.0 per cent, while in real terms, the growth rate was to the tune of 15.9 per cent. Imports of
goods and services increased, in nominal terms, from Rs74,513 million in 2000 to Rs84,290
million in 2001, or 13.1 per cent, while in real terms the growth rate was 8.5 per cent.
Table I.1: Main National Accounting Aggregates and Ratios
1999
A.
1
2001
2
2002
3
Aggregates (Rs million)
1.
GDP at basic prices
Annual Real Growth Rate (Per cent)
93,633
104,271
117,225
127,180
+2.3
+8.9
+5.8
+4.6
2.
GDP at market prices
107,749
119,085
132,130
143,180
3.
GNI at market prices
107,283
118,302
132,323
142,640
4.
Per Capita GNI at market prices (Rupees)
91,271
99,651
110,254
117,561
5.
Aggregate Consumption Expenditure
82,904
89,485
97,616
106,815
6.
Compensation of Employees
42,718
46,367
49,665
52,835
7.
Gross Domestic Fixed Capital Formation
29,676
28,069
30,049
31,545
8.
Gross Capital Formation
28,607
30,272
29,431
33,085
9.
Gross Domestic Savings
24,845
29,600
34,514
36,365
10.
Resource Balance ( 9 - 8 )
-3,762
-672
5,083
3,280
11.
Gross National Disposable Income
110,899
119,964
134,018
144,455
B.
Ratios: As a Percentage of GDP at market prices
1.
Gross Domestic Savings
23.1
24.9
26.1
25.4
2.
Aggregate Consumption Expenditure
77.0
75.2
73.9
74.6
3.
Gross Domestic Fixed Capital Formation
27.5
23.6
22.7
22.0
4.
Resource Balance
-3.5
-0.6
3.8
2.3
45.6
44.5
1.
Ratio: As a Percentage of GDP at basic prices
Compensation of Employees
2
3
Revised estimates.
Preliminary estimates.
First forecast.
Source: Central Statistical Office, Government of Mauritius.
1
42.4
20 E
10
5
0
00 +
0
199
23
41.5
0
1
C.
1
2000
AGGREGATE CONSUMPTION EXPENDITURE
Aggregate consumption expenditure grew, in real terms, at a slower pace of 3.5 per
cent in 2001 compared to 4.1 per cent in 2000.
Growth in household consumption
expenditure fell, in real terms, from 3.5 per cent in 2000 to 3.3 per cent in 2001. Growth in
general government consumption expenditure registered a marked decline, from 7.1 per cent
in 2000 to 4.7 per cent in 2001. As a percentage of GDP at market prices, nominal aggregate
consumption expenditure decreased from 75.2 per cent in 2000 to 73.9 per cent in 2001,
resulting from a drop in the ratios of both household consumption expenditure and general
government consumption expenditure to GDP from 62.1 per cent and 13.1 per cent in 2000 to
61.3 per cent and 12.6 per cent, respectively, in 2001.
Table I.1 shows the main national accounting aggregates and ratios from 1999 to
2002.
GROSS DOMESTIC FIXED CAPITAL FORMATION (GDFCF)
Investment in the economy was rather subdued in 2001, growing by 3.3 per cent, in
real terms, following a contraction of 8.2 per cent in 2000. Exclusive of the purchase of
aircraft and marine vessel, growth in Gross Domestic Fixed Capital Formation, declined, in
real terms, from 1.0 per cent in 2000 to negative 2.0 per cent in 2001. As a result, the ratio of
GDFCF to GDP at market prices fell from 23.6 per cent in 2000 to 22.7 per cent in 2001.
Private sector investment grew by 1.1 per cent in 2001 as against a contraction of 11.5 per
cent in 2000. Public sector investment recorded a growth of 9.4 per cent in 2001 compared
to 2.3 per cent in 2000. The share of private sector investment in total GDFCF decreased
from 73.2 per cent in 2000 to 71.6 per cent in 2001 while that of the public sector increased
from 26.8 per cent in 2000 to 28.4 per cent in 2001.
An analysis of investment by type of capital goods shows that investment in
"Building and Construction Work" recorded, in nominal terms, an increase of 4.5 per cent
from Rs15,167 million in 2000 to Rs15,848 million in 2001 and, in real terms, this rise
amounted to 1.4 per cent.
Construction activity in the non-residential sub-sector was
relatively depressed in 2001, contracting by 7.7 per cent compared to a growth of 11.2 per
cent in 2000 while the real growth rate of investment in "Residential Building" decreased
from 7.3 per cent in 2000 to 4.6 per cent in 2001.
Growth of investment in "Other
Construction Work" rose from 6.0 per cent in 2000 to 11.8 per cent in 2001, mainly due to
the high level of investment in the telecommunications sector, sewerage works and the
construction of the Midlands dam. Investment in "Machinery and Equipment" grew, in real
terms, by 5.5 per cent in 2001 as against a contraction of 22.2 per cent in 2000 but, exclusive
of the purchase of aircraft and marine vessel, the growth rates in both 2000 and 2001 were
negative at 6.5 per cent and 6.0 per cent, respectively. Investment in "Passenger Car"
contracted by 2.8 per cent in 2001 compared to 2.5 per cent in 2000. Growth of investment
in "Other Transport Equipment", excluding the purchase of aircraft and marine vessel, went
up from 1.8 per cent in 2000 to 13.7 per cent in 2001 while for "Other Machinery and
Equipment", it rose from 8.1 per cent in 2000 to 9.3 per cent in 2001.
Table I.2: Real Growth Rates of GDFCF by Type of Capital Goods
(Per cent)
1999
A. Building and Construction Work
Residential Building
+8.5
2001
2
+8.5
+1.4
+3.3
+7.3
+4.6
Non-residential Building
+25.9
+11.2
-7.7
Other Construction Work
-4.8
+6.0
+11.8
+37.0
-22.2
5.5
+13.3
-6.5
-6.0
-2.7
-2.5
-2.8
+191.0
-65.1
+114.4
-0.3
+17.9
+1.8
-8.1
+13.7
-9.3
+22.1
-8.2
+3.3
B. Machinery and Equipment
Machinery and Equipment (excluding aircraft & marine vessel)
Passenger Car
Other Transport Equipment
3
Other Transport Equipment (excluding aircraft & marine vessel)
Other Machinery and Equipment
Gross Domestic Fixed Capital Formation
1
2000
1
2
Revised estimates.
Preliminary estimates.
Inclusive of the purchase of aircraft and marine vessel.
Source: Central Statistical Office, Government of Mauritius.
3
A breakdown of GDFCF by industrial use shows that investment activities in a
number of sectors were adversely affected, posting negative real growth rates in 2001.
Investment in "Agriculture, Hunting, Forestry and Fishing" registered a contraction, in real
terms, of 11.4 per cent in 2001 following the drop of 22.2 per cent in 2000. Likewise,
investment in "Manufacturing", "Construction" and "Hotels and Restaurants" contracted, in
real terms, by 2.7 per cent, 30.9 per cent and 9.3 per cent, respectively, in 2001. Investment
in the "Electricity, Gas and Water" sector contracted, in real terms, by 18.7 per cent in 2001
compared to a drop of 28.8 per cent in 2000. Investment in the "Financial Intermediation"
sector, however, grew in real terms, by 81.5 per cent in 2001 as against a contraction of 16.0
per cent in 2000. The real growth rate of investment in "Real Estate, Renting and Business
Activities" decelerated from 8.4 per cent in 2000 to 1.5 per cent in 2001. As a percentage to
total GDFCF, investment in "Transport, Storage and Communication", "Real Estate, Renting
and Business Activities" and "Manufacturing" accounted for 22 per cent, 24 per cent and 15
per cent, respectively, in 2001.
Tables I.2 and I.3 show the growth of GDFCF, in real terms, by type of capital goods
and by industrial use, respectively, for the years 1999 through 2001. Chart I.1 depicts
movements in the ratios of GDFCF and Gross Domestic Savings (GDS) to GDP at market
prices for the years 1994 through 2001. Chart I.2 shows investment by sector in 2001.
Table I.3: Real Growth Rates of GDFCF by Industrial Use
(Per cent)
1999
1. Agriculture, Hunting, Forestry and Fishing
2000
1
2001
2
+4.1
-22.2
-11.4
-
-
-
+5.6
+0.0
-2.7
+13.0
-5.8
-2.8
+11.7
-28.8
-18.7
5. Construction
-4.2
+8.0
-30.9
6. Wholesale and Retail Trade, Repair of Motor Vehicles,
+9.7
+13.7
-7.6
+8.8
+15.4
-8.4
7. Hotels and Restaurants
+64.1
-0.2
-9.3
8. Transport, Storage and Communication
+86.0
-39.9
+40.1
-6.9
-16.0
+81.5
2. Mining and Quarrying
3. Manufacturing
of which: EPZ
4. Electricity, Gas and Water
Motor Cycles, Personal and Household Goods
of which: Wholesale and Retail Trade
9. Financial Intermediation
10. Real estate, Renting, and Business Activities
+4.4
+8.4
+1.5
+3.3
+7.3
+4.6
+12.9
+15.9
-19.4
11. Public Administration and Defence; Compulsory Social Security
+36.6
-3.7
-12.9
12. Education
-16.6
+9.7
+4.7
13. Health and Social Work
-28.3
+45.8
-15.7
14. Other Services
-31.9
+147.4
-4.8
+22.1
-8.2
+3.3
Owner occupied dwellings
Other
Gross Domestic Fixed Capital Formation
1
2
Revised estimates.
Preliminary estimates.
Source: Central Statistical Office, Government of Mauritius.
NATIONAL
DISPOSABLE
INCOME,
NATIONAL
SAVINGS
AND
RESOURCE BALANCE
Gross National Disposable Income (GNDI) grew, in nominal terms, by 11.7 per cent
in 2001, up from 8.2 per cent in 2000, and faster than nominal consumption expenditure,
which registered a growth of 9.1 per cent in 2001 compared to 7.9 per cent in 2000. As a
result, the ratio of Gross National Savings (GNS) to GDP at market prices increased from
25.6 per cent in 2000 to 27.5 per cent in 2001. As a percentage of GDP at market prices, the
Resource Balance (defined as Savings minus Investment) registered an improvement from
negative 0.6 per cent in 2000 to a positive figure of 3.8 per cent in 2001.
Chart I.1: Ratio of GDFCF and GDS to GDP at Market Prices
Per cent
32
30
GDFCF to GDP Ratio
28
26
24
GDS to GDP Ratio
22
20
1994
1995
1996
1997
1998
1999
2000
2001
Source: Central Statistical Office, Government of Mauritius.
Chart I.2: Investment by sector in 2001
Government and
Others
12%
Agriculture
2%
Manufacturing
15%
Real Estate, Renting &
Business Activities
24%
Electricity, Gas and
Water
5%
Construction
1%
Wholesale and Retail
Trade
7%
Financial
Intermediation
3%
Transport, Storage and
Communication
22%
Source: Central Statistical Office, Government of Mauritius.
AGRICULTURE
Hotels and Restaurants
9%
The agricultural sector performed well in 2001, mainly due to improved climatic
conditions and higher sugarcane production. In real terms, the agricultural sector expanded
by 8.1 per cent in 2001 compared to 28.1 per cent in 2000. The sugar sector recorded a real
growth rate of 13.4 per cent in 2001 compared to 52.5 per cent in 2000. The growth rate of
the non-sugar agricultural sector decelerated from 9.4 per cent in 2000 to 2.6 per cent in
2001.
Table I.4: Main Aggregates of the Agricultural Sector
1999
1. Value Added at current basic prices (Rs million)
of which: Sugarcane
2. Annual Real Growth Rate (Per cent)
3. Share of Agriculture in total GDP at basic prices (Per cent)
4. Investment at current prices (Rs million)
5. Share of Investment in Agriculture in total GDFCF (Per cent)
6. Sugar Exports (Rs million)
7. Agricultural Exports other than Sugar (Rs million)
8. Share of Agricultural Exports in total Domestic Exports (Per cent)
1
5,613
2,433
-25.8
6.0
864
2.9
7,602
150
20.6
2000
1
2001
6,871
3,469
+28.1
6.6
692
2.5
5,544
179
15.2
2
7,970
4,330
+8.1
6.8
636
2.1
8,138
273
19.4
2
Revised estimates.
Preliminary estimates.
Source: Central Statistical Office, Government of Mauritius.
Table I.4 shows the main aggregates of the agricultural sector for the years 1999
through 2001. Chart I.3 shows the sectoral distribution of GDP at basic prices in 2001.
Chart I.3: Sectoral Distribution of GDP at Basic Prices in 2001
Real Estate, Renting &
Business Activities
9%
Government and
Others
12%
Agriculture
7%
Financial
Intermediation
10%
Transport and
Communication
13%
Manufacturing
23%
Electricity, Gas and
Water
2%
Hotels and Restaurants
6%
Wholesale and Retail
Trade
12%
Construction
6%
Source: Central Statistical Office, Government of Mauritius.
Sugar
In the context of the government's objective of rendering the sugar sector more
competitive internationally and thus ensuring its long-term viability, the sugar industry
underwent several reforms in 2001, namely, the ongoing centralisation of milling operations,
the introduction of a Voluntary Retirement Scheme (VRS) package and the exploitation of
new growth areas. The VRS package will bring about a reduction in the labour force, which
is expected to curtail production costs and thus enhance productivity in the sugar sector. In
2001, sugar output grew by 13.4 per cent and accounted for 54 per cent of value added in the
agricultural sector. Sugar production stood at 645,598 tonnes in 2001 compared to 569,289
tonnes in 2000. This improved performance in 2001 was due to the regular rainfall recorded
with an almost equal distribution over the island and adequate sunshine, which are the
prerequisites for optimum cane growth. The total area under sugarcane harvested in 2001
amounted to 73,302 hectares compared to 73,056 hectares in 2000. The average yield of
sugarcane per hectare increased from 69.94 tonnes in 2000 to 79.13 tonnes in 2001. The rate
of extraction of sugar, however, remained unchanged at 11.15 per cent in 2001.
Table I.5 shows sugar production and exports for the years 1998-99 through 2001-02.
Table I.5: Sugar Production and Exports
(Tonnes Tel Quel)
1998-99
Opening Stock (1 July)
Available supplies
Exports:
2001-02
19,158
27,174
36,496
0
0
0
0
619,042
689,139
389,033
1
445,164
2
583,820
648,387
3
624,867
678,413
4
628,461
378,514
571,647
611,473
United Kingdom
482,841
329,011
502,215
500,538
Other European Union
122,650
39,752
59,504
84,787
18,478
6,028
4,143
19,667
84
144
41
112
United States
Canada
Other
4,408
3,579
5,744
6,369
40,415
39,178
39,911
40,663
Surplus/(Loss) in Storage
1,105
0
333
0
Closing Stock (30 June)
Closing ISA Special Stock
19,158
0
27,174
0
36,496
0
26,278
0
Domestic Consumption
1
2000-01
32,061
Opening ISA Special Stock
Production
1999-00
Includes 38,036 tonnes of imported sugar.
3
2
Includes 36,973 tonnes of imported sugar.
4
Includes 37,393 tonnes of imported sugar.
Includes 17,050 tonnes of imported sugar.
Note: The above figures refer to fiscal years, which extend from July to June, and not to crop
years, which extend from June to May.
Source: Mauritius Sugar News Bulletin, Mauritius Chamber of Agriculture.
Sugar production for fiscal year 2001-02 reached 624,867 tonnes compared to
583,820 tonnes for fiscal year 2000-01. For 2001-02, exports and imports of sugar stood at
611,473 tonnes and 17,050 tonnes compared to 571,647 tonnes and 37,393 tonnes,
respectively, for the year 2000-01. Around 96 per cent of total exports, or 585,325 tonnes,
were directed to the European Union under the Sugar Protocol. Domestic consumption
increased from 39,911 tonnes in 2000-01 to 40,663 tonnes in 2001-02.
Reflecting the higher export volume, export proceeds of cane sugar increased
significantly from Rs5,544 million in 2000 to Rs8,138 million in 2001 and accounted for
18.8 per cent of total domestic exports. Export receipts from cane molasses also went up
from Rs46 million in 2000 to Rs134 million in 2001.
Non-Sugar Agricultural Sector
The non-sugar agricultural sector recorded a real growth of 2.6 per cent in 2001
compared to 9.4 per cent in 2000. In nominal terms, value added by this sector increased
from Rs3,402 million in 2000 to Rs3,640 million in 2001. Its share in the agricultural sector,
however, declined from 49.5 per cent in 2000 to 45.7 per cent in 2001.
The total area under foodcrop production grew from 7,357 hectares in 2000 to 7,918
hectares in 2001 with foodcrop production increasing to 129,119 tonnes in 2001 compared to
114,484 tonnes in 2000. The production of tea rose from 6,440 tonnes in 2000 to 7,440
tonnes in 2001 while tobacco production declined slightly from 563 tonnes in 2000 to 556
tonnes in 2001.
MANUFACTURING
In the context of the global economic slowdown, the manufacturing sector, which
consists of sugar milling, EPZ and "other manufacturing" grew, in real terms, at a slower rate
of 4.3 per cent in 2001 compared to a growth of 7.6 per cent in 2000. The "Manufacturing"
sector represented 22.7 per cent of total value added in the economy in 2001. The real
growth rate of the EPZ sector declined from 6.0 per cent in 2000 to 4.0 per cent in 2001.
Output from the sugar milling sub-sector recorded a growth of 13.4 per cent in 2001
compared to 52.5 per cent in 2000. Value added by the non-sugar milling and non-EPZ subsectors grew, in real terms, by 4.0 per cent in 2001 compared to 7.0 per cent in 2000.
Table I.6 shows the main aggregates of the manufacturing sector for the period 1999
through 2001.
Table I.6: Main Aggregates of the Manufacturing Sector
1999
1. Value Added at current basic prices (Rs million)
2000
1
2001
2
22,432
24,640
26,652
2. Annual Real Growth Rate (Per cent)
+2.0
+7.6
+4.3
3. Share of Value Added in total GDP at basic prices (Per cent)
24.0
23.6
22.7
4,332
4,464
4,526
14.6
15.9
15.1
4. Investment at current prices (Rs million)
5. Share of Investment in total GDFCF (Per cent)
1
Revised estimates.
2
Preliminary estimates.
Source: Central Statistical Office, Government of Mauritius.
EPZ exports went up by 8.8 per cent, from Rs30,961 million in 2000 to Rs33,695
million in 2001, up from 6.3 per cent in 2000. The rise was mainly on account of an increase
in the exports of fish and fish preparations, textile yarn, fabrics, made-up articles, and articles
of apparel and clothing. EPZ imports increased from Rs16,399 million in 2000 to Rs17,139
million in 2001, or 4.5 per cent, up from 4.2 per cent in 2000. Net EPZ exports registered a
growth of 13.7 per cent, from Rs14,562 million in 2000 to Rs16,556 million in 2001.
EPZ exports in 2001 were directed towards three major countries, namely, the United
States, France and United Kingdom, which represented 26.1 per cent, 23.4 per cent and 21.3
per cent, respectively, of total EPZ exports' destination. The main countries of origin of EPZ
imports in 2001 were India, China, Hong Kong, France, South Africa and Italy. EPZ imports
from European and African countries increased by 8.1 per cent and 50.3 per cent,
respectively, while those from Asian countries contracted by 7.2 per cent in 2001.
In order to take advantage of trade opportunities arising from the African Growth and
Opportunity Act (AGOA), namely, duty-free and quota-free access to the US market for EPZ
products manufactured in less developed countries with no constraint on sources of origin till
2004, some Mauritian EPZ firms had relocated some of their operations to Madagascar.
However, the political turmoil in Madagascar proved to be a major setback for Mauritian
investors there and increased concerns about the vulnerability of the EPZ sector. Growth
prospects for EPZ exports to the US are expected to improve significantly with the US
economic recovery and the passing of the AGOA II, under which the products of the "knit to
shape" category are entitled to duty-free access, representing a saving of 17 per cent in terms
of customs duties.
Table I.7 shows some major aggregates relating to the EPZ for the period 1999
through 2001.
Table I.7: Main Aggregates of the EPZ
1999
1. Number of Enterprises (as at December)
2000
1
2001
2
512
518
522
11,697
12,523
13,415
3. Annual Real Growth Rate (Per cent)
+6.0
+6.0
+4.0
4. Share of EPZ in total GDP at basic prices (Per cent)
12.5
12.0
11.4
1,755
1,702
1,724
5.9
6.1
5.7
7. Exports (f.o.b.) (Rs million)
29,131
30,961
33,695
8. Imports (c.i.f.) (Rs million)
15,735
13,396
16,399
14,562
17,139
16,556
2. Value Added at current basic prices (Rs million)
5. Investment at current prices (Rs million)
6. Share of EPZ Investment in total GDFCF (Per cent)
9. Net Exports (Rs million)
1
Revised estimates.
2
Preliminary estimates.
Source: Central Statistical Office, Government of Mauritius.
TOURISM
As a result of the economic slowdown in the United States and European countries,
and the increased risks associated with travelling following the 11 September 2001 attacks in
the US, the tourism sector operated on a low key in 2001, standing at 1.0 per cent compared
to 13.5 per cent in 2000. However, gross tourism receipts increased significantly from
Rs14,234 million in 2000 to Rs18,166 million in 2001, or 27.6 per cent, compared to a
growth of 4.1 per cent in 2000. The increased earnings in 2001 were partly attributed to the
relatively firmer euro and aggressive marketing strategy policies being pursued. The number
of tourist arrivals increased from 656,453 in 2000 to 660,318 in 2001. Total tourist nights
increased from 6,500,000 in 2000 to 6,528,000 in 2001. Around 91.9 per cent of tourists
came to Mauritius on holidays while some 3.5 per cent turned up for business purposes.
In 2001, tourist arrivals from European countries contracted by 0.6 per cent, from
439,989 in 2000 to 437,305, compared to an expansion of 16.2 per cent in 2000. Tourist
arrivals from the African region went up from 163,921 in 2000 to 168,522 in 2001, or 2.8 per
cent, compared to a growth of 4.9 per cent in 2000. Tourist arrivals from Asia and America
went up by 5.6 per cent and 5.1 per cent, respectively, in 2001. Tourist arrivals from Europe
accounted for around 66 per cent of total tourist arrivals in 2001 compared to 67 per cent in
2000. The number of tourists from France, Germany and Italy contracted by 0.4 per cent, 3.8
per cent and 4.2 per cent, respectively in 2001 while tourist arrivals from the United
Kingdom registered an increase of 4.6 per cent.
Tourist arrivals from Reunion Island
increased by 4.8 per cent whereas arrivals from the Republic of South Africa fell by 1.6 per
cent in 2001.
The total number of hotels remained unchanged at 95 in 2001. Some hotels, however,
carried out renovation and extension projects in order to offer better services to their
customers. The number of rooms and bedplaces went up from 8,657 and 17,776 in 2000 to
9,024 and 18,350, respectively, in 2001. The monthly room occupancy rate for all hotels
taken together decreased from 70 per cent in 2000 to 66 per cent in 2001. For "large" hotels,
the occupancy rate decreased from 73 per cent in 2000 to 70 per cent in 2001.
Direct employment in the tourist industry increased from 17,811 at the end of March
2000 to 19,944 at the end of March 2001, registering a growth of 12.0 per cent. To give a
further boost to the tourism industry, the government enacted specific legislation for an
orderly development of tourism-related activities and service providers. In addition, there are
ongoing efforts to diversify tourist markets.
FINANCIAL INTERMEDIATION
Value added in the services sector grew, in real terms, by 13.6 per cent in 2001
compared to 14.6 per cent in 2000. The growth in this sector was led by banking activities,
which expanded, in real terms, by 16.5 per cent in 2001 compared to 18.5 per cent in 2000,
mainly because of the high growth rate maintained by "offshore" banks. Growth in the
"Insurance" sub-sector remained unchanged at 5.0 per cent in 2001.
REAL ESTATE, RENTING AND BUSINESS ACTIVITIES
Growth of the "Real Estate, Renting and Business Activities" sector, which regroups
owner occupied dwellings, renting of machinery and operator, computer activities and other
business activities increased from 6.8 per cent in 2000 to 7.3 per cent in 2001. Growth was
led by activities other than those relating to "Owner occupied dwellings", which increased
from 10.7 per cent in 2000 to 10.9 per cent in 2001. The "Owner occupied dwellings" subsector grew by 3.6 per cent in 2001 compared to 3.1 per cent in 2000.
OTHER SECTORS
Value added in the "Electricity, Gas and Water" sector grew, in real terms, by 12.2
per cent in 2001 compared to 23.2 per cent in 2000. The "Construction" sector grew
marginally by 1.0 per cent in 2001 compared to 7.5 per cent in 2000. The real growth rate of
"Transport, Storage and Communication" stood at 9.3 per cent in 2001, following higher
levels of investment in the telecommunications sector, compared to 10.0 per cent in 2000.
Value added by "Public Administration and Defence and Compulsory Social Security" grew,
in real terms, by 4.1 per cent in 2001 compared to 5.6 per cent in 2000. The "Education"
sector expanded by 3.7 per cent in 2001 compared to 8.3 per cent in 2000 while "Health and
Social Work" and "Other Services" registered increases of 5.3 per cent and 7.6 per cent in
2001 compared to 5.1 per cent and 6.0 per cent, respectively, in 2000.
OUTLOOK FOR 2002
For the year 2002, the economy is estimated to expand by 4.6 per cent. Excluding the
sugar sector, the growth rate is estimated at 5.3 per cent. The financial intermediation,
tourism and manufacturing sectors are expected to grow by 8.9 per cent, 4.0 per cent and 3.4
per cent, respectively, in 2002. The growth rate of the EPZ sector is estimated at 4.0 per
cent. The agricultural sector, however, is expected to contract by 6.1 per cent, mainly on
account of the drop of 11.7 per cent in the sugar sector in the wake of cyclone Dina that hit
Mauritius in February 2002. Aggregate consumption expenditure is expected to pick up, in
real terms, by 3.6 per cent while the savings rate and the ratio of GDFCF to GDP at market
prices are expected to decline slightly to 26.3 per cent and 22.0 per cent, respectively, in
2002.
It is expected that with global economic recovery, external demand, especially from
European countries and the United States, will strengthen and give a boost to exports in the
manufacturing sector. Significant efforts and resources will be devoted to tap the vast
opportunities arising from the AGOA through the setting up of additional spinning mills and
by way of increased regional integration through investment and partnerships with African
countries so as to increase the supply of AGOA-eligible yarn and fabric. In the same vein,
efforts will be directed towards increasing the competitiveness of the EPZ by moving up the
value-added chain and by introducing the clustering concept.
The aggressive marketing strategy adopted recently with regard to tourism will no
doubt produce results and the number of tourist arrivals could reach 695,000 in 2002. In
addition, hotels are expected to continue their renovation and extension projects. Besides,
promotional campaigns aimed at targeting new markets and offering other aspects of tourism,
such as eco-tourism and cultural tourism, are well under way.
Also, amid ongoing
centralisation efforts, sugar estates are expected to make additional investment to increase
productivity in their operations. Moreover, developments in the field of Information and
Communication Technology (lCT), which will contribute towards improving our competitive
edge and discovery of new markets, combined with enhancements in the offshore business
environment carry the potential to take the economy on a higher growth path.