Mauritania: Economic and Political Overview

Economic Indicators

Mauritania's GDP growth is considerably exposed to fluctuations in global mineral commodity prices given the large share of extractive industries in the country's economy. The extractive sector's normalization (from 18.3% in 2022 to 9.4% in 2023) was the main factor behind the slight dip in overall growth in 2023 (at 6.5%, down from 6.8% in 2022). However, growth in the non-extractive sector increased to 5.9% in 2023 (from 3.8% in 2022), driven by expanded financial services, particularly mobile banking, despite slowdowns in fisheries and agriculture. According to the IMF, economic growth in 2024 was projected to slow to 4.6%, primarily due to a contraction in the extractive sector. However, growth in the non-extractive sector was expected to remain strong at 5.7%, supported by better-than-expected performance in agriculture, fisheries, and continued growth in the financial sector. Despite the start of GTA offshore gas production, economic growth in 2025 is expected to slow to 4.2%, due to a projected 23.5% decline in gold production as some mines near the end of their cycle and a downward revision in iron ore output. Growth is forecast to decelerate further to 3.7% in 2026, reflecting continued declines in gold and iron ore production, before picking up in 2027-2029, driven by higher gold and iron ore production.

Regarding public finances, as of the end of September 2024, the 2024 budget execution was in line with projections, showing a slight overall fiscal surplus, with revenue surpassing expenditure. Revenue, including grants, totalled MRU 68.0 billion, representing 16.1% of the 2024 projected GDP (66.7% of the 2024 budget). Tax revenues were 30.1% higher year-to-date compared to the same period in 2023. According to the IMF, the non-extractive primary deficit, including grants, narrowed to 3.7% of GDP from 5.2% of GDP in 2023. As a result, public debt declined further from 46.4% in 2023 to 44.3% in 2024. Inflation rose to 2.5% (y-o-y) in October 2024, up from 1.6% at the end of 2023, driven primarily by food and beverages inflation, which accounted for more than half of the increase. With inflation projected to reach 3.0% by the end of 2024 (compared to 2.5% in October 2024), and remaining entrenched at 3-4% for more than 12 months, the BCM narrowed the interest rate corridor on October 22, 2024, and reduced the policy rate from 8% to 7.25%.

Overall, the government will need to modernize the country and support education and industrial diversification to limit its dependence on raw materials price fluctuations (iron, copper, gold, quartz, cattle, and fish). To this extent, authorities have elaborated an inclusive growth strategy for the period 2017-30, planning structural reforms and significant investment in infrastructure. The three pillars of this investment strategy are inclusive economic growth, human capital development, and governance improvement. The country's unemployment rate was estimated at 10.4% in 2024 (stable year-on-year); however, modest agricultural performance and rising inflation are expected to drive the poverty rate up to 31.8% by 2027, potentially pushing an estimated 193,000 people into poverty (data World Bank). Mauritania is considered a lower-middle-income country, with a GDP per capita (PPP) estimated at USD 8,233 in 2024 by the IMF.

Main Sectors of Industry

A vast desert, bordered to the west by the 700km-long Atlantic coast, to the east by the desert border with Mali, and to the south by the Senegal River, Mauritania has long thrived on its key resources of iron ore and fishery products, its main production sectors. The country also boasts large deposits of gold and copper, with many oil and gas fields discovered in recent years. The primary sector represents 18.7% of the GDP and employs nearly one-third of the workforce (World Bank, latest data available). Mauritania possesses an estimated potential for 500,000 hectares of arable land with high productivity averages, mainly in the fertile southern areas bordering the Senegal River, where irrigated agriculture is concentrated. While Mauritania produces millet, sorghum, dates, and rice, domestic cereal production only meets about one-third of the national food needs, necessitating reliance on imports, especially for sorghum, millet, and wheat. Farming, practised by Mauritanian nomads, is also a significant area of activity. The 2024 total cereal production was projected at 589,000 tonnes by FAO, close to the 2023 level and approximately 25% above the average of the previous five years.

The country possesses mineral, oil, and gas resources, constituting an expanding market. Concerning the production of liquefied natural gas, an agreement has been reached with Senegal on the equal distribution of revenues from operating the Grande Tortue Ahmeyim (GTA) offshore project, where the first production started at the end of 2024, having been delayed by more than a year. Dominated by gold, iron (Mauritania being the second-largest African producer), and copper, the mining sector represents almost 18.9% of the country’s GDP and roughly 76.3% of its exports (data from the Extractive Industries Transparency Initiative). Overall, the secondary sector (including construction) contributes to 30.6% of the country's GDP and employs 14.7% of its workforce. The manufacturing sector accounts for a mere 6% of GDP.

The tertiary sector represents more than 43.8% of the GDP and employs 52.6% of the workforce. The main sub-sectors are transport and telecommunications. Despite the potential of tourism, the sector has yet to attract significant foreign investment due to a lack of infrastructure and regulatory frameworks. Mauritania’s financial sector is overwhelmingly dominated by its banking institutions, which form the backbone of the country’s financial infrastructure. By August 2024, the number of banks stood at 17, representing a significant share of the financial system and the wider economy, with assets equivalent to 45.2% of GDP during the same period (IMF data). However, it is notable that only around 10% of the population actually holds bank accounts.

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	32.7	14.7	52.6
Value Added (in % of GDP)	18.7	30.6	43.8
Value Added (Annual % Change)	-1.0	5.8	5.8

Source: World Bank - Latest available data.

 

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Monetary Indicators	2015	2017	2018	2019	2020
Ouguiya (MRU) - Average Annual Exchange Rate For 1 MUR	9.26	1.04	1.05	1.03	0.96

Source: World Bank - Latest available data.

 

 

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:

56,1/100

World Rank:

128

Regional Rank:

23

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

 

Foreign Trade in Figures

Mauritania is very open to international trade, which represents around 91% of its GDP (World Bank – latest data available). The government has taken steps to liberalize the economy, reduce trade barriers, and promote foreign investment. Mauritania has signed several trade agreements aimed at promoting trade and investment. These include the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across the continent, and the Economic Community of West African States (ECOWAS), which promotes economic integration among West African countries. The country has also signed bilateral trade agreements with several countries, including China and the United States. In 2023, mineral exports accounted for 75.1% of Mauritania’s total exports (EUR 2.5 billion), including 37.3% from gold (EUR 1.2 billion), 34.6% from iron (EUR 1.1 billion), and 3.1% from copper (EUR 107 million). Fishery products represented 19.7% of total exports (EUR 675 million – data France Ministry of Finance). As per imports, they were led by petroleum oils (34.4%), sugar (6.3%), wheat and meslin (4.6%), soya-bean oil (3.7%), and palm oil (3.2%).

In 2023, Canada was the primary destination for Mauritanian exports (24.4% of the total), followed by China (22.7%), Algeria (8.2%), Switzerland (7.4%), Spain (6.2%), and the United Arab Emirates (5.6%); whereas imports came from the United Arab Emirates (18.4%), Spain (12.8%), Belgium (10.8%), China (8.0%), and France (6.9% - data Comtrade). Canada is the largest importer of Mauritanian gold, with increased international prices and gold production explaining its significant position. Meanwhile, China imports nearly all of Mauritania's copper production, half of its iron production, and fishery products.

According to WTO, in 2023, Mauritania's exports reached USD 4 billion (up by 6.3% year-on-year), whereas imports stood at USD 5.2 billion, marking a 2.3% increase vis-à-vis one year earlier. As per services, Mauritania’s exports hit USD 209 million in 2023, whereas imports stood at USD 875 million. As per the World Bank’s estimates, the total external trade balance for goods and services was negative by 14.9% of GDP in 2023 (from 22.6% one year earlier). According to the same source, iron ore and fish exports increased by 15% and 43% year-on-year in the first half of 2024. Overall, real exports grew by 15% over the same period. It should also be noted that the first phase of the Greater Tortue Ahmeyim (GTA) offshore gas project will start in mid-2025, boosting exports and supporting domestic power generation.

Sources of General Economic Information

Ministries

Ministry of Economic Affairs and Development

Statistical Office

National Statistical Institute (in French)

Central Bank

Central Bank of Mauritania (in French)

Stock Exchange

There is no stock market or other public trading of shares in Mauritania

Search Engines

Directory of Cities, Towns and Regions in Mauritania

Economic Portals

Mauritania Internet Guide (In French)

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