The government of Mauritius unveiled a 6 month plan a few days ago, a plan to bolster the faltering economy. The Minister of Finance stated that there must be a balance that will stimulate economic growth as well as controls on spending, in order to prevent the acquisition of a deficit that is in danger of hitting levels low enough to prove unsustainable for the island nation’s economy. Growth on the island has continued at the rate of approximately five percent in the last four years. Many companies had been thriving due to the immigration and to the tourism industry such as the five star hotels. Mauritius relies however on business and trade from Asian and other European markets, which have not escaped the effects of the worldwide economic depression. Inflation has slowed from almost the ten percent that it was at the end of 2008, to about eight percent the rate it is currently, and is predicted to fall to four percent by the end of the year.
Many businesses have begun diversifying in order to survive. Once the economy had relied on the production of textiles and sugar, however the island has now begun to expand into the industries of banking and tourism. This has resulted in Mauritius becoming one of the prosperous and stable economies in Africa. And the forecast suggests that this will provide beneficial to the yearly incomes of Maurtians. Tourism has been affected however. Just about two thirds of those traveling to the island are from Europe, and during the past few months of 2009 the number of arrivals has fallen close to ten percent. Stocks had fallen for the various hotel and resorts chains as well. However, these two industries have been marketing aggressively with the hopes that this will soon change. This island is the perfect vacation destination, with palm tree lined beaches surrounded by the beautiful Indian Ocean, and hopefully the second half of the year will prove to be financially more successful than the first half of the year.
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