To make any significant dent in the unemployment rate, standing at around 8.8 per cent, Mauritius needs to move to a higher growth path of at least 7 to 8 per cent per annum. In developing new growth poles, we must take care to consolidate the existing pillars of the economy, a consideration not without implications for the conduct of monetary policy.
We are facing several domestic issues that limit our ability to fully attain our potential. Our financial institutions and businesses must become more competitive and innovative, regulators like SBP and SECP must actively facilitate financial markets, and the Government should step up its function of providing infrastructure for growth, most crucially to meet the Energy demand of productive sectors.