A more balanced economy. This is, according to the minister of Finance, Rama Sithanen, the secret for a prosperous economy and higher growth. At his press conference last Friday, he appeared quite confident about the economic forecasts for next year ?if the positive trend? continues. He, however, acknowledged that many problems remained to be solved and that more time was needed to reach a significant improvement in the economic situation. But ?it seems we are on the right track?, he asserted.

The minister of Finance insisted that the situation is getting better mainly because we are no longer putting all our eggs in the same basket. ?For a long time, growth had been led by consumption but today there is much more behind the growth rate ? the service sector, consumption, exports, private investment and foreign direct investment have all brought their contribution to today?s growth rate.?

This could explain, according to the minister, how growth should go up from 2.5% in 2005 to 5% in 2006 ? if everything goes according to plan. But he made it clear that it was important to keep our feet on the ground and recognise that ?although we seem to be on the right path, we now need to accelerate the process to achieve the goal of a 7 to 8% growth rate?.

The keyword remains ?balance? as far as investments are concerned. Minister Sithanen revealed that there had been a slight improvement in investment but we could expect better results in the future since the composition of investment is changing, as it now involves foreign direct investment and private investment.

<B>Feeling that the worst is behind</B>

The minister of Finance made it clear that his recently launched reform would not prove fruitful within the next two years. ?Time is necessary to really feel the change and for all citizens to benefit from the reform. But what is important is that the trend has been reversed.?

The main and more satisfactory example, mentioned by the Prime minister a few days ago, is undoubtedly the unemployment rate. ?It is the first time since 1991 that the trend is reversed, that unemployment is decreasing,? he said happily. Although, once again, this is no significant decrease, the very fact that the trend has been reversed is a good sign for the future, the more so as he has the feeling that the ?worst is behind us? as in the textile industry where there have been big job losses during the past years.

As for exports, again the minister?s tone was optimistic. Here again, diversification in export revenue should help improve the present results even more. New sectors like the seafood hub, as well as manufacture of thread and cloth are helping to raise export revenue.

Hence, in view of the positive trend, the minister of Finance believes the lives of each and every Mauritian will definitely improve over the coming years. Even if inflation is not expected to decrease next year, the minister does not look anxious and is confident that this situation will not last. And, for those wishing to earn more money next year, the minister advises starting a career in the construction sector where a big boom is expected. And if we rely on his conviction that ?if the construction sector works well, then all other sectors will follow?, we should start 2007 more serenely.

<B>Where will investment go? </B>

The Public-Private Partnership (PPP) appears as an essential tool to attract investors and develop new projects. The financial secretary, Ali Mansoor, seized the opportunity of the launching of the PPP Guidance Manual (PPPGM) to express the government?s wishes as to possible PPP projects worth consideration. According to him, public transport and production of ethanol and electric energy will be the main sectors where investment will be needed. With the desire shown by the government to put an end to traffic congestion and improve the situation of drivers and passengers on the roads, huge investments will be needed ? and a large part could come from the private sector to relieve the government. Projects concerning, water, sewerage, public health, tourism and ICT could also benefit from the help of the private sector and be based on PPP.