São Paulo – This Wednesday (5th), the International Monetary Fund (IMF) released a review of the Mauritanian economy within the scope of the three-year Extended Credit Facility. The IMF technicians came to the conclusion that the economy is stronger, and approved a government request to increase the loan. After the US$ 16.9 million loan approved on November 27, the IMF has already loaned US$ 101.6 million to the country under the program. Still, the Fund advised Mauritania to step up its efforts to rescue people out of poverty and creating jobs.
According to the Fund’s report, Mauritania has proved to be strong and resistant to external and internal shocks. The economy has withstood the crisis which hit the country in 2011 and 2012, and revenues from iron ore exploration went back to growth. The Gross Domestic Product (GDP) is expected to be up 6.2% from 2011; in 2011, the GDP was up 3.9% from 2010.
The Fund’s technicians said the country was able to face up to the external crisis and the drought that hit the country. They praised the efforts to increase revenues and noted that the country also benefited from capital inflows stemming from increased iron ore extraction. According to the report, the country was also favoured by “exceptional” donor aid. According to the IMF, the priorities are reducing the economy’s exposure to external shock and fostering inclusive growth.
“Despite Mauritania’s sound macroeconomic performance, progress in reducing poverty and unemployment has been insufficient. Poor infrastructure, an unfavorable business climate, and restricted access to finance thwart private-sector development, which remains essential for diversifying the economy away from commodity dependence,” the IMF statement reads.
*Translated by Gabriel Pomerancblum
