2013 Index of Economic Freedom

Mauritius

overall score76.9
world rank8
Rule of Law

Property Rights70.0

Freedom From Corruption51.0

Limited Government

Government Spending81.9

Fiscal Freedom92.1

Regulatory Efficiency

Business Freedom78.2

Labor Freedom72.3

Monetary Freedom75.4

Open Markets

Trade Freedom87.9

Investment Freedom90.0

Financial Freedom70.0

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Quick Facts
  • Population:
    • 1.3 million
  • GDP (PPP):
    • $19.3 billion
    • 4.1% growth
    • 4.5% 5-year compound annual growth
    • $14,954 per capita
  • Unemployment:
    • 7.8%
  • Inflation (CPI):
    • 6.5%
  • FDI Inflow:
    • $273.4 million
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Mauritius’s economic freedom score is 76.9, making its economy the 8th freest in the 2013 Index. Its overall score is essentially the same as last year, with improvements in property rights and labor freedom counterbalanced by declines in freedom from corruption and monetary freedom. Mauritius is ranked 1st out of 46 countries in the Sub-Saharan African region.

Maintaining its status as one of the world’s 10 freest economies, Mauritius continues to be a global leader in economic freedom. All the pillars of economic freedom are solidly maintained. The small island economy benefits greatly from a sound and transparent legal framework that strongly upholds the rule of law. Budgetary reforms remain largely on course, keeping public debt and budget deficits under control despite expansionary fiscal policy since 2008.

With a stable business climate, Mauritius sustains a dynamic entrepreneurial environment. Barriers to free trade are low, and commercial operations are aided by efficient regulations that support open-market policies. Inflationary pressures are under control, and foreign investment is welcome.

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Background

Independent since 1968, Mauritius is a successful democracy and one of Sub-Saharan Africa’s strongest economies. Navin Ramgoolam of the Mauritius Labour Party has been prime minister since 2005. Mauritius has a well-developed legal and commercial infrastructure and a tradition of entrepreneurship and representative government. It also has one of the region’s highest per capita incomes. The government is trying to modernize the sugar and textile industries while promoting diversification into such areas as information and communications technology, financial and business services, seafood processing and exports, and free trade zones. Agriculture and industry are less important than they were, and services, especially tourism, are now the economic mainstay. The government still owns utilities and controls imports of rice, flour, petroleum products, and cement. Mauritius has made maritime security a priority and in 2012 signed a deal with Britain’s Royal Navy for the transfer of suspected pirates captured by Britain to Mauritius for prosecution.

Rule of LawView Methodology

Property Rights 70.0 Create a Graph using this measurement

Freedom From Corruption 51.0 Create a Graph using this measurement

The judiciary is independent, and trials are fair. The legal system is generally non-discriminatory and transparent. Expropriation is unlikely. Enforcement of laws regarding intellectual property rights is relatively effective. The Independent Commission Against Corruption investigates offenses and can confiscate the proceeds of corruption and money laundering. Mauritius is one of Africa’s least corrupt countries.

Limited GovernmentView Methodology

The income and corporate tax rates are a flat 15 percent. Other taxes include a value-added tax (VAT), and the overall tax burden is equal to 18.5 percent of total domestic income. Government spending has increased to 24.6 percent of total domestic output. The budget deficit has been under control, and public debt hovers around 50 percent of GDP.

Regulatory EfficiencyView Methodology

With no minimum capital requirements, the overall start-up process has been simplified. Launching a business takes five procedures and six days on average. Licensing requirements remain time-consuming, taking over 100 days to complete. Labor regulations are not rigid, and the costs of terminating employment are relatively low. Inflationary pressures have increased, but overall monetary stability has been well maintained.

Open MarketsView Methodology

The trade-weighted average tariff rate is very low at 1.1 percent, and there are relatively few non-tariff barriers. The investment framework is open and efficient, facilitating the flow of new investment. The growing financial sector, dominated by private commercial banks, is competitive. The number of non-performing loans is declining, and banking continues to be well-capitalized and resilient despite ongoing global financial turbulence.

Country's Score Over Time

Bar Graph of Mauritius Economic Freedom Scores Over a Time Period

Country Comparisons

Bar Graphs comparing Mauritius to other economic country groups

Regional Ranking

rank country overall change
1Mauritius76.9-0.1
2Botswana70.61.0
3Rwanda64.1-0.8
4Cape Verde63.70.2
5Madagascar62-0.4
6South Africa61.8-0.9
7Ghana61.30.6
8Uganda61.1-0.8
9Namibia60.3-1.6
10Burkina Faso59.9-0.7
11The Gambia58.80.0
12Zambia58.70.4
13Tanzania57.90.9
14Gabon57.81.4
15Benin57.61.9
16Swaziland57.20.0
17Mali56.40.6
18Kenya55.9-1.6
19Senegal55.50.1
20Malawi55.3-1.1
21Nigeria55.1-1.2
22Mozambique 55-2.1
23Seychelles54.91.9
24Côte d'Ivoire 54.1-0.2
25Djibouti53.90.0
26Niger53.9-0.4
27Cameroon52.30.5
28Mauritania52.3-0.7
29Guinea51.20.4
30Guinea-Bissau51.11.0
31Central African Republic50.40.1
32Ethiopia49.4-2.6
33Liberia49.30.7
34Burundi490.9
35Togo48.80.5
36Sierra Leone48.3-0.8
37São Tomé and Príncipe 48-2.2
38Lesotho47.91.3
39Comoros47.51.8
40Angola47.30.6
41Chad45.20.4
42Republic of Congo 43.5-0.3
43Equatorial Guinea42.3-0.5
44Democratic Republic of Congo39.6-1.5
45Eritrea36.30.1
46Zimbabwe28.62.3
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