It’s reasonable to expect that going for a Mauritius property investment will remain a wise move despite the economic challenges caused by the COVID-19 pandemic. The Mauritian economy has successfully weathered major global shocks previously, thanks to its strong government.
Significantly, the COVID-19 pandemic came at a time when Mauritius has been showing remarkable strength. The island nation has built a well-diversified economy and a strong financial sector. The country also has a low inflation rate and strong social security safety nets.
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Mauritius has overcome past economic shocks. In the 2008 global financial meltdown, for example, the Mauritian government launched a stimulus package to protect the country’s vulnerable sectors and stem job losses.
Direct government support was extended to companies to help them weather that storm. Work-training programs helped prevent layoffs. The government reimbursed employers for training days.
And when plummeting sugar prices in the European Union and the end of global quotas on textiles stunted its growth, Mauritius refocused on becoming a regional financial centre. The government adopted policies to encourage cross-border private and corporate banking, cross-border investment, and wealth management.
This has proved key to the island’s economic growth. In one recent study, the country’s financial sector was estimated to have contributed nearly USD1 billion or 8 percent to Mauritius’s total GDP. It has also generated more than 11,000 jobs.
The country’s triumphs over adversity are an economic success story in Africa. Notably, this reputation became one of the main motivations for making Mauritius property investment overtures abroad.
Again, Mauritius’s economic diversity has helped counter the challenges of COVID-19. Some sectors, such as banking and offshore services, notably remained open during the country’s lockdown albeit under reduced capacity. The government has dealt proactively with lockdown difficulties to ensure that these would not adversely affect property investment in Mauritius. Banks had to provide a six-month moratorium for capital repayment on existing loans for those affected by COVID-19.
The finance ministry has likewise introduced a wage assistance scheme for employers and an assistance scheme for the self-employed as well. These measures will help Mauritius maintain its political and socio-economic stability, while the world rallies to manage the challenges of COVID-19.