WORLD RANK: REGIONAL RANK: MAURITIUS

13 1 auritius’s economic freedom score is 77.0, making its economy the 13th freest in the 2021 Index. Its overall score has increased by 2.1 ECONOMIC FREEDOM STATUS: M MOSTLY FREE points, primarily because of an improvement in labor freedom. Mauritius is ranked 1st among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional and world averages.

This year, Mauritius solidified its ranking as the economically freest nation in the sub-Saharan Africa region. To achieve membership in the highest Index category (free), the government would have to build on its successes and redouble its efforts to correct its ongoing deficit in gov- ernment integrity, which persists at a troubling level that is more typical of countries that are ranked much lower overall in economic freedom.

IMPACT OF COVID-19: As of December 1, 2020, 10 deaths had been attributed to the pandemic in Mauritius, and the economy was forecast to contract by 14.2 percent for the year.

ECONOMIC FREEDOM SCORE

▲ UP 2.1 POINTS 77.0

0 50 60 70 80 100  REGIONAL AVERAGE WORLD (SUB-SAHARAN AFRICA REGION) 55.7 61.6 AVERAGE

HISTORICAL INDEX SCORE CHANGE (SINCE 1999): +8.5

RECENT FREEDOM TREND QUICK FACTS



POPULATION: UNEMPLOYMENT: 1.3 million 6.7%  77.0 GDP (PPP): INFLATION (CPI): 74.7 75.1 74.9 73.0 $31.6 billion 0.5% 3.5% growth in 2019

5-year compound FDI INFLOW:  $472.3 million annual growth 3.7% $23,942 per capita PUBLIC DEBT: 62.5% of GDP 

       2019 data unless otherwise noted. Data compiled as of September 2020

BACKGROUND: Mauritius gained independence from the United Kingdom in 1968. Sir Anerood Jugnauth, a former president, became prime minister for the third time in 2014 but resigned in 2017 in favor of his son Pravind, whose party won a rare parliamentary majority in 2019. Mauritius has undergone a remarkable economic transformation from a low-income, agriculturally based economy to a diversified, upper-middle-­ income country that has attracted considerable foreign investment and has one of the Africa region’s highest per capita GDPs. The government is trying to modernize the sugar and textile industries while pro- moting diversification into such other areas as information technology and financial and business services. Services and tourism remain important economic drivers, and maritime security is a priority.

292 2021 Index of Economic Freedom WORLD AVERAGE | ONE-YEAR SCORE CHANGE IN PARENTHESES 12 ECONOMIC FREEDOMS | MAURITIUS

RULE OF LAW GOVERNMENT SIZE

(+2.6) (+11.0) (+1.7) (+0.1) (–4.1) (–5.8)

 

 

 

 

 

78.4 73.6 55.0 91.6 78.0 73.5   Property Judicial Government Tax Government Fiscal Rights E ectiveness Integrity Burden Spending Health

Property rights are respected, and the World Bank’s 2020 The personal income and corporate tax rates are a flat 15 Doing Business report ranked Mauritius 23rd out of 190 percent. Other taxes include a value-added tax. The overall countries for ease of property registration. Under a legacy tax burden equals 19.8 percent of total domestic income. hybrid French–British legal system, the judiciary has generally Government spending has amounted to 27.1 percent of total maintained its independence. The prevalence of corruption output (GDP) over the past three years, and budget deficits is low by regional standards, but graft and nepotism remain have averaged 3.4 percent of GDP. Public debt is equivalent concerns and are increasingly a source of public frustration. to 62.5 percent of GDP. 

REGULATORY EFFICIENCY OPEN MARKETS

(+1.2) (+14.4) (+3.6) (–0.2) (No change) (No change)

 

 

 

 

 

83.7 74.6 77.4 88.0 80.0 70.0   Business Labor Monetary Trade Investment Financial Freedom Freedom Freedom Freedom Freedom Freedom

Mauritius has improved its protocols for continuation of Mauritius has five preferential trade agreements in force. business during insolvency proceedings. The time needed The trade-weighted average tariff rate is 1.0 percent, and 12 to apply for a wastewater connection has been shortened. nontariff measures are in effect. An efficient and transparent Required severance pay for redundancy dismissals has been investment framework supports foreign investment inflows. greatly reduced, increasing employers’ willingness to hire. The open investment regime is underpinned by a nondiscrim- According to an IMF budget projection, total government inatory legal system. Private banks dominate the financial grants, transfers, and subsidies amounted to 4.8 percent of sector, and about 90 percent of adult Mauritians have access the 2019–2020 budget. to a bank account.

The Heritage Foundation | heritage.org/Index 293