Economic costs

Climate change and Hazards present a multifaceted threat to Mauritius, impacting economic stability, public health, infrastructure, and livelihoods. The economic costs are substantial, stemming from direct impacts on key economic sectors and indirect effects on social structures and government finances.  The economic costs of climate change in Mauritius underscore the need for comprehensive climate adaptation and mitigation strategies that integrate economic planning, public health, and infrastructure resilience. Investments in sustainable practices, renewable energy, and robust infrastructure are critical to reducing long-term costs and enhancing economic and social stability. Strengthening the resilience of the economy to climate impacts not only addresses immediate financial losses but also secures a sustainable future for all sectors of society.

Direct Economic Impacts

Agriculture: Fluctuating weather patterns, severe storms, and changing rainfall regimes affect crop yields and livestock health, leading to decreased agricultural productivity. This not only impacts the agricultural sector's output—vital for domestic consumption and export revenues—but also increases food import bills, stressing the national economy.

Fisheries: As ocean temperatures rise and marine ecosystems alter, fish stocks decline, affecting both artisanal and commercial fishing yields. The resultant decrease in fish availability increases import needs and reduces export potential, thereby widening the trade deficit.

Tourism: Tourism in Mauritius is highly sensitive to climate perceptions. Increased frequency and intensity of cyclones, along with coastal erosion and coral bleaching, deter tourist arrivals and lead to substantial revenue losses. Rebuilding and repairing tourism infrastructure in the wake of extreme weather events also drain financial resources.

Indirect Economic Impacts

Public Health: Climate change exacerbates public health challenges. Increased temperatures and changing rainfall patterns bolster the spread of vector-borne diseases like malaria and dengue fever, leading to greater healthcare costs and reduced workforce productivity.

Infrastructure: Extreme weather events strain existing infrastructure (roads, bridges, utilities), leading to costly repairs and upgrades. Frequent repairs divert public spending from development initiatives to maintenance, limiting economic growth and innovation.

Insurance and Financial Services: As hazards increase in frequency and severity, insurance claims rise, leading to higher premiums. This not only affects individual and business finances but also challenges the insurance sector with higher risk portfolios.

Economic and Social Interconnectedness

The economic impacts of climate change are closely tied to social outcomes. Job losses in sectors like agriculture, fisheries, and tourism due to reduced productivity can lead to increased unemployment rates, exacerbating poverty and social inequality. This creates a cycle of reduced economic activity and diminished public health outcomes, as a financially strained populace may have less access to healthcare, nutritious food, and education.

The strain on public finances due to increased expenditure on disaster response, health crises, and infrastructure repair further limits the government's ability to invest in long-term climate resilience and adaptation strategies. This shortcoming can lead to prolonged economic instability and reduced living standards.