WORLD BANK REPORT: Mauritius Faces Risk of Sovereign Rating Downgrade

Title: According to the World Bank: Mauritius remains exposed to a potential downgrade of its sovereign rating

Content: While revenue is increasing, it still falls short of expectations, and state expenditures remain high, leaving the government's fiscal maneuverability limited amid persistent public debt. According to the World Bank, the country is at risk of a new downgrade of its sovereign rating.State Revenues: Increasing, but...The tax measures introduced in October 2025 - including the reduction of the VAT threshold and the implementation of a €3 nightly tourist tax - have raised state revenues to 25.8% of GDP in 2025. However, delays in ratifying the agreement on the Chagos Islands have impacted expected revenues. In 2026, with the introduction of VAT on digital services in January, revenues are projected to rise to 26.5% of GDP, as highlighted by the World Bank.