The updated report, National Accounts, of the Statistics Mauritius was out yesterday, 30th June. Economic growth is expected to jump from 3.7 % to 3.5 %. The latter percentage was predicted in the month of March. Now, the manufacturing sector compelled the Statistics Mauritius to review its forecasts for the economic growth of the year 2014.
The decrease has been mainly due to the forecasts for the manufacturing sector which accounts for a considerable chunk of the gross domestic product at 17 %. Growth of the manufacturing sector is now predicted at 1.7 % as opposed to the initial forecast of 2.4 % as per the March update. The textile industry, forming a major part of the manufacturing sector, will allegedly witness a meager increase in growth of 1.5 %.
The progress to be made by the building industry has also been predicted to be mediocre. The decrease will probably be noted at 4.8 % instead of the initial 3 % decrease that was previously thought. Why has the building industry undergone this decrease? According to the Statistics Mauritius, the lack of monumental projects in the private sector has accounted for this decrease.
However, the national investment will probably increase by 0.4 % in the year of 2014, because of the massive investments in the public sector, namely the construction works at the Mauritius Container Terminal and the Bagatelle Dam project. The hotel sector will also undergo an increase in growth by 0.5 % due to the great number of tourists expected to land on the island; around 1 030 000 tourists are to visit Mauritius this year, according to the forecasts.