Mauritius trade deficit widens

in imports, official data showed yesterday.
The Central Statistics Office said in a statement that the deficit grew to 16,9 billion rupees (US$601 million).
Exports rose 25,6 percent to 17,8 billion rupees while imports climbed 20,6 percent to 34,7 billion rupees.
“Based on past trends, total exports for the year 2011 are expected to be of the order of 78 billion rupees, against imports of 161 billion rupees.
The trade deficit would therefore be around 83 billion rupees,” the CSO said.
That would represent a 24,8 percent increase over 2010’s trade deficit of 66,5 billion rupees.
Mauritius exporters have been urging the central bank to cut interest rates to help them remain competitive.
The eurozone and Britain are major target markets for the island and its tourism industry and the eurozone’s debt crisis and resulting fall in the euro has hurt the economy.
The Mauritius rupee fell to a low of 65,5 against the British pound at the start of 2007 but has been stuck below 50 since the end of 2009 and hit its strongest level since 2003 earlier this month. The rupee has followed a similar trend against the euro and is well above lows hit at the end of 2008.
But the Bank of Mauritius raised its benchmark lending rate by 50 basis points in March to curb a faster than expected rise in inflation and said further monetary policy action would be needed in the coming months.
The CSO said a rise in the import bill for mineral fuels, lubricants and related products drove up the value of inflows in the first quarter. Clothes and clothing accessories were the main exports, accounting for 39,8 percent of exports in the quarter.
Britain remained the Indian Ocean island’s main export market, accounting for a 20,4 percent share, followed by France.
India was the main supplier during the quarter with 27,8 percent of imports.
India supplies petroleum products to Mauritius. – Reuters.