Mauritius Budget 2021/22: Shovelling our way out of the economic pit
By Intercontinental Trust Ltd
Introduction
More than a year after its discovery, the coronavirus is still raging across the globe and no country has been left unscathed. However, there is some glimmer of hope as economies around the world are opening up following months of lockdown. According to the Organisation for Economic Co-operation and Development (OECD), “Korea and the United States are reaching pre-pandemic per capita income levels after about 18 months.” The OECD projects global GDP growth to be around 5.8% this year (compared to 4.2% projected in December 2020).
Mauritius has fared quite well in managing the Covid-19 crisis thanks to the strict health measures and a nationwide lockdown swiftly implemented by the Government last year when the first cases of the illness were confirmed on the island. The island even enjoyed a 9-months lull before the Covid-19 storm struck again in March 2021 and the country went into a second lockdown. As from 1 May 2021, Mauritius has moved to the second phase of its de-confinement and is pursuing its vaccination campaign with the objective of immunising 60% of its population by September 2021.
Now is the time more than ever to think our way out of the Covid-19 conundrum. The virus will not fizzle out any time soon. Lockdowns are only a short-term measure and the way forward remains vaccination rollouts and the transition to the “New Normal”. Saving lives and livelihoods whilst maintaining the social fabric is a priority for many countries, including Mauritius, for if overlooked, this could prove to be more destructive than the sanitary crisis.
Established in 1999, Intercontinental Trust Limited (ITL) provides a plethora of financial and fiduciary services to a diversified client base including private equity firms, real estate multinationals, financial institutions, investment managers and high-net-worth individuals among others.
ITL is located in Ebene, the financial centre of Mauritius and has offices in Singapore, Seychelles and representative offices in South Africa and Kenya.