According to Statistics Mauritius, the country's trade deficit narrowed to Rs 19.514 billion in July from Rs 23.725 billion in June. This represents a 17.7% decrease. The improvement is attributed to a 9.4% decline in imports, which totaled Rs 30.385 billion, and a 10.7% increase in total exports, valued at Rs 10.871 billion.
Despite the monthly improvement, the trade deficit has grown by 35.2% compared to July 2025. Over the past year, imports have risen by 30.8%, while total exports have increased by 23.5%. The surge in import prices, particularly for energy, continues to put pressure on the trade balance. In the second quarter, import prices rose by 20%, whereas export prices increased by only 2.6%.
The price index for fuels, a significant import component, jumped by 59.1% during the quarter. In July, fuel imports amounted to Rs 6.702 billion, making them the second-largest import category after machinery and transport equipment, which totaled Rs 7.564 billion. The increase in fuel prices has significantly impacted the trade balance.
While total exports rose in July, the growth is partially attributed to an increase in Ship's Stores and Bunkers, which are supplies for foreign vessels and aircraft. These exports grew from Rs 2.457 billion in July 2025 to Rs 4.619 billion in July 2026. However, excluding this category, exports actually declined from Rs 6.346 billion to Rs 6.252 billion over the same period.
China remains Mauritius' largest supplier, accounting for 24.3% of its imports, followed by India. The main export destinations, excluding Ship's Stores and Bunkers, are the United States, South Africa, and France. The trade data for July indicates some improvement but does not yet signal a clear trend reversal.
The coming months will be crucial in determining the trade balance's trajectory, particularly with regards to energy prices, import levels, and merchandise exports, excluding Ship's Stores and Bunkers. The persistence of high energy prices and import growth will likely continue to challenge the trade balance.
The Mauritian economy faces challenges in maintaining a stable trade balance amid fluctuating global commodity prices and varying export performance. The government's efforts to diversify exports and manage import growth will be essential in addressing these challenges and promoting sustainable economic growth.
Key points
- The trade deficit in Mauritius decreased by 17.7% in July but remains 35.2% higher than in July 2025.
- Import prices rose by 20% in the second quarter, driven largely by a 59.1% increase in fuel prices.
- China's share of Mauritius' imports stands at 24.3%, with the US, South Africa, and France being key export destinations.
