• Mauritania’s performance continued to be strong and growth is projected to accelerate to 6.7 percent in 2019.

• The program aims at entrenching macroeconomic stability, supporting inclusive and job-creating growth, and building international reserve buffers.

• The authorities plan to use the prospective fiscal space prudently for priority social spending—education, health, and social protection—and public infrastructure.

On May 20, 2019, the Executive Board of the International Monetary Fund (IMF) completed the third review of the three-year arrangement with Mauritania under the Extended Credit Facility. The arrangement, with total access of SDR 115.92 million (about US$ 159.8 million at current exchange rates), or 90 percent of Mauritania’s quota, was approved on December 6, 2017 (see Press Release No. 17/468). The completion of the review allows the authorities to draw SDR 16.56 million (about US$ 22.8 million), bringing total disbursements to SDR 66.24 million (about US$ 91.3 million).

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

“Mauritania’s performance under the Extended Credit Facility Arrangement continues to be strong. Macroeconomic stability has been maintained, external debt-to-GDP declined, official reserves increased, and some fiscal space has been created. Structural reform implementation progressed as planned.

“Economic growth picked up to an estimated 3.6 percent in 2018 and is projected to accelerate to 6.7 percent this year, supported by continued broad-based non-extractive growth reflecting strong domestic demand and nascent diversification. The outlook has improved, buoyed by more favorable terms of trade and the upcoming development of a large offshore gas field. Nevertheless, downside risks related to global economic developments, commodity price volatility, adverse weather, and regional security concerns remain elevated.

“In the context of an uncertain global environment, the program aims at entrenching macroeconomic stability, supporting inclusive and job-creating growth, and building international reserve buffers. The authorities plan to use the prospective fiscal space prudently for priority social spending—education, health, and social protection—and public infrastructure, and to seek financing on concessional terms to improve debt sustainability.

“To support these objectives, the authorities’ program envisages continued policy discipline accompanied by broad-based structural reforms. Priorities include strengthening tax policy and administration to ensure broad-based tax compliance and reforming budget processes to improve the effectiveness of public spending. Modernizing the foreign exchange policy framework and increasing exchange rate flexibility will help to address external shocks and preserve official reserves, while activating the new monetary policy instruments will improve liquidity management. Upgrading bank regulatory standards and supervision will strengthen banking sector soundness and financial inclusion. The authorities are also committed to establishing a robust macro-fiscal framework to efficiently manage future windfall gas revenues.

“Going forward, it will be important to step up efforts to improve the business environment, strengthen economic governance, and fight corruption.”

Mauritania: Selected Economic Indicators, 2015–20

Sources: Mauritanian authorities; and IMF staff estimates and projections.

^1/Including government debt to the central bank recognized in 2018.

^2/Excluding passive debt to Kuwait under negotiation.

^3/Excluding the hydrocarbon revenue fund.

Mauritania: Selected Economic Indicators, 2015–20

				2015	2016	2017	2018	2019	2020
							Est.	Proj.	Proj.
				(Annual change in percent)
National accounts and prices
	Real GDP			0.4	1.8	3.1	3.6	6.7	5.8
		Real extractive GDP		-5.6	0.7	-7.1	-18.7	20.6	6.3
		Real non-extractive GDP		1.4	2.0	4.5	6.3	5.4	5.8
	GDP deflator			-4.2	3.4	3.4	2.8	5.3	3.1
	Consumer prices (period average)			0.5	1.5	2.3	3.1	3.6	4.0
				(In percent of non-extractive GDP; unless otherwise indicated)
Central government operations
	Revenues and grants			32.6	31.7	31.8	33.6	30.5	31.2
		Non-extractive		26.8	27.9	27.9	28.2	27.5	27.7
			Taxes	16.9	18.7	19.7	20.8	20.4	20.7
		Extractive		3.8	1.7	2.8	4.7	2.2	2.6
		Grants		2.0	2.2	1.1	0.7	0.8	0.9
	Expenditure and net lending			37.2	32.3	31.9	30.0	30.6	30.7
		Current		20.6	19.0	19.6	19.1	18.1	18.0
		Capital		15.8	13.3	12.3	10.8	12.4	12.8
	Primary balance (excl. grants)			-4.5	-1.5	0.3	4.8	0.9	1.1
	Overall balance (in percent of GDP)			-3.4	-0.5	0.0	3.3	0.0	0.5
	Public sector debt (in percent of GDP) 1/ 2/			75.2	77.4	75.9	83.0	78.5	80.9
				(Annual change in percent; unless otherwise indicated)
Money and Credit
	Broad money			0.4	7.1	13.7	13.8	11.5	11.6
	Credit to the private sector			9.7	8.1	7.5	19.2	13.5	13.7
Balance of Payments
	Current account balance (in percent of GDP)			-19.8	-15.1	-14.4	-18.4	-15.7	-21.6
		Excl. externally financed extractive capital imports		-9.6	-9.6	-7.4	-11.4	-10.2	-12.9
	Gross official reserves (in millions of US$, eop) 3/			822.8	824.4	849.0	919.1	1,010.6	1,133.8
		In months of prospective non-extractive imports		5.6	5.5	4.6	5.0	5.2	5.7
	External public debt (in millions of US$) 2/			3,208.6	3,354.9	3,573.0	3,631.8	3,784.0	4,046.4
		In percent of GDP		66.4	71.6	72.5	69.3	67.3	69.4
	Real effective exchange rate			7.8	-5.8	-2.1	-0.8	…	…
Memorandum items:
	Nominal GDP (in millions of US$)			4,830.5	4,685.6	4,925.1	5,237.1	5,621.3	5,826.9
	Price of iron ore (US$/Ton)			56.1	58.6	71.1	70.1	76.5	70.2

Sources: Mauritanian authorities; and IMF staff estimates and projections.

^1/Including government debt to the central bank recognized in 2018.

^2/Excluding passive debt to Kuwait under negotiation.

^3/Excluding the hydrocarbon revenue fund.

View Table

Mauritania: Selected Economic Indicators, 2015–20

				2015	2016	2017	2018	2019	2020
							Est.	Proj.	Proj.
				(Annual change in percent)
National accounts and prices
	Real GDP			0.4	1.8	3.1	3.6	6.7	5.8
		Real extractive GDP		-5.6	0.7	-7.1	-18.7	20.6	6.3
		Real non-extractive GDP		1.4	2.0	4.5	6.3	5.4	5.8
	GDP deflator			-4.2	3.4	3.4	2.8	5.3	3.1
	Consumer prices (period average)			0.5	1.5	2.3	3.1	3.6	4.0
				(In percent of non-extractive GDP; unless otherwise indicated)
Central government operations
	Revenues and grants			32.6	31.7	31.8	33.6	30.5	31.2
		Non-extractive		26.8	27.9	27.9	28.2	27.5	27.7
			Taxes	16.9	18.7	19.7	20.8	20.4	20.7
		Extractive		3.8	1.7	2.8	4.7	2.2	2.6
		Grants		2.0	2.2	1.1	0.7	0.8	0.9
	Expenditure and net lending			37.2	32.3	31.9	30.0	30.6	30.7
		Current		20.6	19.0	19.6	19.1	18.1	18.0
		Capital		15.8	13.3	12.3	10.8	12.4	12.8
	Primary balance (excl. grants)			-4.5	-1.5	0.3	4.8	0.9	1.1
	Overall balance (in percent of GDP)			-3.4	-0.5	0.0	3.3	0.0	0.5
	Public sector debt (in percent of GDP) 1/ 2/			75.2	77.4	75.9	83.0	78.5	80.9
				(Annual change in percent; unless otherwise indicated)
Money and Credit
	Broad money			0.4	7.1	13.7	13.8	11.5	11.6
	Credit to the private sector			9.7	8.1	7.5	19.2	13.5	13.7
Balance of Payments
	Current account balance (in percent of GDP)			-19.8	-15.1	-14.4	-18.4	-15.7	-21.6
		Excl. externally financed extractive capital imports		-9.6	-9.6	-7.4	-11.4	-10.2	-12.9
	Gross official reserves (in millions of US$, eop) 3/			822.8	824.4	849.0	919.1	1,010.6	1,133.8
		In months of prospective non-extractive imports		5.6	5.5	4.6	5.0	5.2	5.7
	External public debt (in millions of US$) 2/			3,208.6	3,354.9	3,573.0	3,631.8	3,784.0	4,046.4
		In percent of GDP		66.4	71.6	72.5	69.3	67.3	69.4
	Real effective exchange rate			7.8	-5.8	-2.1	-0.8	…	…
Memorandum items:
	Nominal GDP (in millions of US$)			4,830.5	4,685.6	4,925.1	5,237.1	5,621.3	5,826.9
	Price of iron ore (US$/Ton)			56.1	58.6	71.1	70.1	76.5	70.2

Sources: Mauritanian authorities; and IMF staff estimates and projections.

^1/Including government debt to the central bank recognized in 2018.

^2/Excluding passive debt to Kuwait under negotiation.

^3/Excluding the hydrocarbon revenue fund.