Mauritius is a high middle-incomecountry with low levels of poverty and inequality. Theheadcount poverty level was 6.9 percent in 2012; measured bythe international standard of United States (U.S.) $2 perday (PPP), poverty was less than 1 percent. On inequality,Mauritius also fared well compared to its peer middle-incomecountries. On the negative side, Mauritius’ growth has notbeen equally shared, despite the general improvement inwelfare. The economy’s polarization was associated with astructural transformation from labor-intensive industries toservices and knowledge-intensive industries. Inclusivenessremains the main challenge for the current growth pattern.When Mauritius will be able to become a high-income countrywill depend on its ability to improve the labor force’sskill set, develop infrastructure, and further improve thebusiness environment to attract foreign direct investment(FDI) and generate domestic investment. Reduction ininequality and boost of shared prosperity will require moregrowth and a more pro-poor pattern of growth. An increase infemale labor force participation, reduction of high youthunemployment rates, improving the efficiency of the socialprotection system will reduce growing skills mismatchfacilitating inclusive growth and eradicating poverty in Mauritius.
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