...Source: Statistics Mauritius Below-par Growth real GdP Growth, yoy Source: Statistics Mauritius consumer spending throughout the year. ...While we forecast a tentative recovery in ----, we caution that this outlook comes with caveats and is heavily reliant on our forecast return to growth in the eurozone playing out. Europe is a key source of foreign direct investment (FDI) into Mauritius, and the two consecutive years of economic contraction in the eurozone in ---- and ---- were a major factor behind the declines of -.- and -.- in Mauritian gross fixed capital formation (GFCF) in those years. In ---- we forecast the eurozone will enjoy a return to economic expansion, with growth forecast to come in at -.- , and this will help drive a return to positive growth in GFCF in Mauritius. ...We expect the expansion in exports to remain slow in ---- despite the return to growth in the eurozone as this growth is likely to be tepid, uneven and fragile. Indications are that European visitors � a key source of foreign exchange earnings � are not yet returning
...Remake ---- split at the start of May, and looks unlikely to be reformed. The split appears to have come about over disagree- ments regarding the distribution of power between the two parties. ...Re- make ---- had made it a key tenet of their campaign and the collapse of the coalition could mean that reform will be pushed back. Following pressure from the UN, Prime Minister Ram- goolam initiated a white paper two years ago looking into the issue of electoral candidates having to declare their ethnicity - a requirement that many believe has entrenched communalism and sectarianism in the country. Critics accuse Ramgoolam of delaying the publication of the white paper until after the ---- elections, as his PTR party stands to be the biggest loser once changes to the electoral system are made. With Remake ---- s collapse making a PTR victory more likely, electoral reform in Mauritius could well be delayed further given the party s preference for the status quo.
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