IMF pulls up Mauritius for poor textiles performance
06 Jan '06
1 min read
International Monetary Fund has stated in its conclusions under the Article IV consultation with Mauritius that phasing out of quotas has badly affected its economy and exports, in particular.
The situation was further aggravated by costly petroleum product imports that resulted in slowed growth to 3.5 percent in 2004/05.
Further, it expects subdued growth in the next two fiscal years.
As regards textile and sugar sectors, the Directors were encouraged by the Mauritian authorities' restructuring plans that aimed at reducing export losses from trade preferences.
They welcomed steps underway to increase the overall efficiency of enterprise operations and seek new export opportunities for textiles.
However, they cautioned against the use of fiscal incentives for the sectors, taking into account the difficult fiscal situation.
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