São Paulo – The International Monetary Fund (IMF) informed on Monday (14) that Mauritania faced the economic crisis and the drought in North Africa in 2011 well. However, the statement about a visit concluded to the country on Monday, warns about the probable increase in inflation and the reduction in performance in current account in 2012.
“Economic growth in Mauritania remains sustained despite the effects of the acute drought and the slowdown in external demand,” said the executive who led the mission, Amine Mati. He added, however, that real GDP growth, estimated at 4% in 2011, was below forecasts, mainly due to worse agricultural production.
In 2012, the Fund forecasts a harder year for the country. Inflation should rise to 7% this year, after ending 2011 at 5.7%. The current account balance should not present the same performance in 2011 due to growth forecasted in investment in infrastructure and greater imports.
Still according to the IMF, Mauritania has comfortable financial reserves and should, therefore, make an effort to strengthen the monetary system and promote inclusive growth to reduce unemployment, poverty and vulnerability to external shock.
*Translated by Mark Ament
