20100824
reuters

PORT LOUIS (Reuters) - Mauritius' economic growth for 2010, 2011 and 2012 is expected to be lower than previously estimated in the 2010 budget, the financial secretary, Ali Mansoor said in a statement, without giving new figures.

"The 2010 budget was formulated in the expectation of a global economic recovery that would trigger renewed dynamism in the domestic economy and a return to higher growth rates in the economy, namely 4.3 percent in 2010, 5.3 percent in 2011 and 5.7 percent in 2012," Mansoor said in a statement addressed to supervising officers in charge of ministries.

"Those economic growth forecasts will have to be revised downward significantly in light of the crisis in the UK and the Euro zone."

The Indian Ocean island's economy has slowed in recent years on the back of the depressed global economy that has squeezed demand for its exports.

"This new crisis is different from the recent global recession. It is not just another transitional external shock. It is likely to result in a long lasting period of weak demand in our main export markets and a permanent shift in market power from Europe to Asia," he said.

The euro zone is a critical source market for the Indian Ocean island's key export sectors like tourism and textiles.

Official government forecasts predict the almost $10 billion economy -- consistently one of Africa's most prosperous and stable -- will grow by 4.2 percent this year compared with an estimated 3.1 percent in 2009.

Earlier this month, Finance Minister Pravind Jugnauth unveiled a 12 billion Mauritius rupee stimulus package -- the island's second stimulus since the onset of the global financial crisis -- to target the tourism and export sectors.