São Paulo – In 2011, Mauritania managed to stabilize its inflation at 6%, promoting structural reforms in the economy and increasing international reserves. According to a report by the International Monetary Fund (IMF), the country only didn’t perform better in 2011 as it was faced by a strong drought that made agricultural production drop. Mauritania, however, needs to make efforts to generate jobs and remove the population from poverty.
According to the IMF, the macroeconomic performance is still strong and elastic, although the drought faced by the country in 2011 presents long-term challenges. The growth of the country’s Gross Domestic Product (GDP) is not yet broad enough to generate more jobs and reduce poverty, which remains high, especially in rural areas.
Even with growth estimated at 5% this year, the greater production of maize, for example, should reach 15,000 tonnes in the 2011/2012 cycle. In the previous period, in 2010/2011, it was 25,000 tonnes.
Mining is one of the main economic activities of the country and should also end the year with a lower performance than expected. Production of copper and gold should remain at the same level as in 2010, but iron ore production is expected to drop.
Despite praising the country’s economic management, the IMF makes some recommendations to local authorities. To the Fund, the growth of investment, development of new agricultural programs and reforms in public companies are welcome measures. Furthermore, it is important to “reinvigorate” the work with reforms that strengthen the business environment.
The Fund recalls that Mauritania was little affected by the popular protests in the Arab nations. It recommends that the country’s central bank promote changes to the exchange market to increase flexibility in the currency and reduce the country’s exposure to international instability.
Report “Islamic Republic of Mauritania: Third Review Under the Three-Year Extended Credit Facility Arrangement” was elaborated from October 11th to 24th 2011 and concluded on November 23rd, after meetings with the IMF technicians and employees of the local government. It was published on Friday (23).
*Translated by Mark Ament
