The balance of payments for Mauritius recorded a global surplus of Rs 64.5 billion in the second quarter of 2026. However, the current account deficit expanded to Rs 19.1 billion, compared to Rs 13.1 billion in the same period of 2025. This deterioration is primarily attributed to the increase in oil imports, influenced by the conflict between the US and Iran and the rise in international oil prices.
The deficit in the balance of goods widened to Rs 54.1 billion, up from Rs 40.9 billion a year earlier. The value of merchandise imports, including freight on board, rose by 19.5% to reach Rs 90.5 billion. This increase was mainly driven by higher purchases of mineral fuels, lubricants, and related products. In contrast, goods exports grew by 4.3% to Rs 28.9 billion, supported by increased sales of ship's stores and bunkers.
The international trade activities of Global Business Companies (GBCs) helped mitigate the trade deficit, with a net margin estimated at Rs 7.6 billion. The services and primary income accounts partially offset the current account deterioration. The services balance surplus stood at Rs 35.3 billion, driven by strong tourist receipts. Gross tourism revenue reached Rs 25.7 billion, representing a 7.9% increase from the second quarter of 2025.
The primary income account posted a surplus of Rs 18.6 billion. Conversely, the secondary income account showed a deficit of Rs 19 billion, largely due to taxes paid by GBCs to foreign governments. On the financial front, net inflows were estimated at Rs 20.8 billion. Direct investments generated net inflows of Rs 16.2 billion, primarily due to increased GBC commitments and investments in the real estate sector.
Portfolio investments recorded net outflows of Rs 49.2 billion, resulting from higher bank placements in foreign debt securities and GBC investments abroad. Other portfolio investments, however, displayed net inflows of Rs 121.1 billion, driven by increased deposits from non-residents with Mauritian banks and growth in GBC external borrowing.
The Reserve Bank of Mauritius released the data on September 30, highlighting the impact of the oil price surge on the nation's current account. The central bank's data also revealed that the trade deficit was a significant contributor to the widened current account deficit.
The Mauritian economy faces challenges in managing its external sector, given the fluctuations in global commodity prices. The government and the central bank will likely closely monitor the situation to implement policies that mitigate the effects of these external shocks.
Key points
- Mauritius' current account deficit widened to Rs 19.1 billion in Q2 2026.
- The deficit was driven by a surge in oil imports.
- The balance of payments recorded a global surplus of Rs 64.5 billion in Q2 2026.
