The Mauritian economy has remained resilient in spite of the recession in the euro area that has weakened its external demand. At 3.3% in 2012, the real GDP growth rate remained positive although it continues to ease after growth rates of 3.8% and 4.2% in 2011 and 2010 respectively. Growth was anchored by strong performances in the financial services, information and communications technology (ICT) and seafood sectors. The 2013 outlook is positive, but may be tempered by downside risks if external demand remains timid. Growth is projected at 3.8% and 4.2% for 2013 and 2014, respectively, driven by continued expansion in the financial services, ICT and seafood sectors. The Cost Price Index (CPI) inflation steadily declined from 6.5% in 2011 to 4.1% in 2012 as the base effects were absorbed and global prices trended downward. As risks to growth outweighed price stability challenges the Key Repo Rate (KRR) was cut by 50 basis points to 4.9% in March 2012.