| Summary: | This 2022 Article IV Consultation discusses that Mauritius has been gradually recovering from the pandemic. Mauritius aspires to become a high-income country within the current decade. The authorities have laid out a development strategy centered on spurring innovation through skill development, technological upgrading, and improving the information and communication technologies infrastructure. Achieving these long-term goals will require macroeconomic stability, reducing risks from declining growth, surging debt, and rising inflation. Mauritius has been gradually recovering after successfully managing the health impact of the pandemic and timely vaccinating its population. Although many sectors have recovered to pre-pandemic levels, activity in tourism and related sectors remains subdued. The main economic challenge is to find a fine balance between supporting recovery and controlling inflation while starting to consolidate the fiscal position. The economy continues to recover following the sharp contraction in 2020 due to the pandemic, but it is faced with new challenges. This report recommends to embraces structural transformation supporting diversification and competitiveness to get Mauritius firmly on the path to a sustainable and resilient economy driven by knowledge and technology. Long-term priorities should include greater digitalization of the economy, and climate change adaptation and mitigation measures
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