Simon Bensimon

MAURITIUS

Signs Of Recovery Appear After Severe Decline In 1983

Mauritius, a small island country off the east coast of Africa, showed signs in 1984 of recovering from the severe economic decline it experienced in 1983 because of the worldwide recession, protectionist measures among its major trading partners, and depressed world prices for sugar, the nation's major export earner.

U.S. exports 1984--$8.7 million

U.S. imports 1984--$53.2 million

The recovery was reflected in the following: a 3 percent growth in GDP in 1984 compared with a flat performance in 1983; a 16 percent expansion in the export-oriented manufacturing sector; a 3.1 percent increase in investment, compared with declines in the previous four years; and a record year for tourism, the third leading export earner after sugar and manufacturing. In addition, unemployment, which had peaked at 25 percent in 1983, began to come down as 10,000 new jobs were generated.

Despite this expansion, inflation was kept under control at 5.6 percent from a high of 40 percent in previous years.

Ongoing weakness in the sugar market continues to offset growth. The recovery, however, combined with a recent trade and investment mission from Mauritius which recently visited the United States, has considerably improved prospects for U.S. exports. Best sales prospects include agricultural equipment, especially drip irrigation equipment; hotel and restaurant equipment; and food processing machinery.

For further information, contact the Desk Officer for Mauritius on (202) 377-0357.

COPYRIGHT 1985 U.S. Government Printing Office

COPYRIGHT 2004 Gale Group