The IMF's warning highlights the interconnected nature of geopolitical stability and economic performance in Mauritania, indicating that external factors can significantly influence local growth.
The emphasis on non-extractive economic growth suggests a strategic shift towards diversifying Mauritania's economy, which may help mitigate risks associated with reliance on the extractive sector.
The ongoing financial reforms and the easing of monetary policy could provide a buffer against economic downturns, signaling a proactive approach by the Mauritanian government to enhance economic resilience.
If geopolitical tensions continue to escalate, it may further hinder investment and development projects in Mauritania, leading to lower growth rates than projected.
Successful implementation of financial reforms and diversification into non-extractive sectors could result in stronger job creation and economic stability over the long term.
The International Monetary Fund (IMF) has issued a warning regarding the economic growth prospects of Mauritania, citing several risks that could impede progress in the medium term. Felix Fischer, head of the IMF mission to Mauritania, announced that the expected growth rate for 2024 stands at 4.6%. This forecast reflects a notable slowdown in the extractive sector, which has been a significant contributor to the country's economy.
The IMF's concerns are amplified by rising geopolitical tensions in the region, delays in the development of the Greater Ahmeym gas field project, and potential weather shocks that could adversely impact the economy. Fischer highlighted these challenges during a press conference in Nouakchott, where he was joined by the Mauritanian Minister of Economy and Finance and the Governor of the Central Bank.
In terms of future projections, the IMF anticipates that Mauritania's economy will grow by 4.2% in 2025, primarily due to continued sluggishness in the mining sector. However, the non-extractive sectors, which are crucial for job creation, are expected to perform better, with growth rates of 5.7% in 2024 and 4.7% in 2025.
The IMF also praised the ongoing financial sector reforms in Mauritania, emphasizing that the easing of monetary policy, following a period of tightening since 2022, could play a vital role in bolstering the financial sector's contribution to overall economic development.
