Yet another sign Mauritius economy is not well: Current account deficit higher

Yet another sign Mauritius economy is not well: Current account deficit higher

December 14, 2017 0 By WFTV

Yet another sign that the Mauritius economy is not going well. The current account deficit will reach 5.1 per cent of gross domestic product in 2017.

The Bank of Mauritius said on Wednesday this means it will be up from 4.5 per cent of GDP in 2016.

The Bank of Mauritius estimated, in the minutes of its November Monetary Policy Committee meeting, a 2017 current account deficit of 23.3 billion rupees ($684 million), up from 19.7 billion rupees a year earlier.

“The goods account deficit is forecast to widen from 72.8 billion rupees in 2016 to 84.7 billion rupees in 2017, mainly as a result of higher imports and lower exports of goods,” it said.

A trade deficit exists when when a nation’s imports exceed its exports. For example, if a nation imports $3 billion in goods, but only exports $2 billion, it has a trade deficit of $1 billion for that year.
A trade deficit can cause a fall in a domestic currency’s value and send jobs beyond a nation’s borders.
Again another sign that the current government is on the wrong track and has no idea what to do to solve this massive problem!