The year 2023 should see the growth of economic activity slow down in Reunion, estimates Iédom at the conclusion of its annual economic report for 2022. Inflation is expected to persist as higher input prices finish spreading throughout the economy. This inflationary pressure would continue to weigh on household purchasing power and business margins.. At the same time, the reduction of budgets allocated to public support measures for individuals (fuel discount, price shield on electricity, etc.) and businesses would risk amplifying this trend. Especially since it is accompanied by the tightening of financing conditions for economic agents. Nevertheless, the expected slowdown would be neither as rapid nor as significant as in mainland France. According to the issuing institute, the island should be able to capitalize on the digitalization of the economic fabric carried out over the last two years, on a resilient demand for services and on the more structuring role of the public sector in Reunion. otherwise, the materialization of infrastructure projects should further offer prospects to companies in different sectors.
