World Bank forecast: growth limited to 2.5% and debt of 90.6% of GDP this year

The World Bank delivers its projections for Mauritius. Growth will slow to 2.5% in 2026 while public debt will rise to 90.6% of GDP. The country is also cited as an example of adaptation in the textile sector.

When the multi-fiber agreement expired in 2005, removing the preferential market access that had structured the Mauritian textile sector, the government opted for a gradual and controlled phase-out rather than prolonged protection. “A five-year adjustment program provided support for the transition linked to the retraining of workers and the diversification of businesses towards higher value-added clothing and technical textiles, but explicitly excluded the continuation of subsidies to companies not meeting productivity criteria,” observes the World Bank. Another observation: employment in the textile sector fell from 90,000 to around 40,000 people, but the companies that survived increased their production per worker by 68% from 2005 to 2015. “The disciplined exit of low-productivity companies, although politically costly, prevented the sector from becoming a permanently protected enclave,” points out the World Bank.

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