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# [MAURITIUS] IMF Sounds Alarm: Public Debt at 86% of GDP, Island Pressed to Accelerate Reforms
- URL: https://businessoi.media/en/maurice-fmi-dette-publique-a-86-du-pib-lile-sous-pression-daccelerer-ses-reformes-en/
- Published: 2026-07-30T02:47:15.000Z
- Updated: 2026-07-30T02:47:15.000Z
- Description: The IMF warns: Mauritius public debt reaches 86% of GDP. Growth revised to 2.8% in 2026. Pension reform and central bank independence at the heart of recommendations.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Finances publiques, Économie, Revue matinale, #en

**In its annual Article IV consultation, the International Monetary Fund delivers a stern assessment of Mauritius's public finances: public debt reached 86% of GDP at end-June 2025, well above the level considered prudent for an emerging island economy. The government's reform efforts are acknowledged, but deemed insufficient.**

## Solid Growth Against a Backdrop of Fragile Balances

The Mauritian economy grew 3.2% in 2025 and is expected to reach 2.8% in 2026, before rebounding to 3.2% over the medium term per IMF projections. Inflation stood at 4.1% in June 2026 but is projected to reach 6.4% by December — above the official target range of 2 to 5%.

The Fund acknowledges that Mauritius's fiscal consolidation is «a step in the right direction», but calls for a significant acceleration. Without further effort, debt risks remaining at levels that compress the state's capacity to invest.

## Five Structural Recommendations

The IMF outlines a five-pronged action plan. First: «Fiscal consolidation must be intensified to place public debt on a durably declining path.» Second: pension reform, deemed essential for controlling current spending while protecting vulnerable groups. Third: monetary policy must «remain forward-looking and be ready to be tightened» to bring inflation back to target. Fourth: transfer undisbursed Mauritius Investment Corporation funds to the Bank of Mauritius to reinforce central bank independence. Fifth: modernise the business climate and digitise the economy to sustain long-term competitiveness.

## Why It Matters

Debt at 86% of GDP is roughly twice the IMF's prudential threshold for small island states. For Mauritius, which has set the ambitious target of crossing $50 billion in GDP by 2030, time is of the essence. Without fiscal consolidation, debt service costs risk absorbing the headroom needed for strategic investment in infrastructure, digital transformation and healthcare. The Fund's message is clear: the efforts under way are necessary, but the island needs to accelerate.

*Sources: Defi Media Group, ION News, Capmad (July 2026), IMF — Article IV Consultation 2026.*