São Paulo – Mauritania should grow 3% this year, according to an estimate released this Tuesday (29) by the International Monetary Fund (IMF). The Fund praised the latest economic progress achieved by the Arab country and disbursed USD 23.5 million as part of an agreement.
At the end of last week, the IMF executive board completed the first review of the arrangement that it has signed with Mauritania, which includes the disbursement of USD 164.4 million throughout a three-year term. This was the first complete review of the arrangement.
According to the IMF, Mauritania’s macroeconomic conditions are improving, along with commodities’ prices. The GDP growth of last year, with no definitive data yet, should reach 3.5%. A moderate slowdown is expected in 2018 due to the delayed impact of a drought in 2017.
“The outlook is positive, although considerable challenges remain to achieve high and inclusive growth,” states the IMF. Inflation should remain moderate in 2.7% on average this year, and international reserves are rising, which should continue to do so. They represent 5.1 months of non-extractive sector imports of the African country.
The Fund believes that the economic targets for 2018 are achievable and that local authorities are committed in this sense and will push forward the monetary, foreign exchange and financial sector reforms. “They plan to gradually expand targeted social safety nets throughout the country and step up efforts to improve the business environment and fight corruption,” said the IMF in its report.
However, the Fund states that considerable challenges remain to achieve high and inclusive growth. Vulnerabilities remain elevated and the country still needs sustained reforms to entrench macroeconomic stability and to achieve growth with the creation of jobs and reduction of poverty and to improve business climate and governance.
Translated by Sérgio Kakitani
