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. After contracting by 0.9% in 2020 following the outbreak of the global COVID-19 pandemic, the economy rebounded by an estimated 2.4% in 2021. The estimated real GDP growth moderated to 3.4% in 2023, down from 6.4% in 2022. This decline can be attributed to a significant contraction in public investment and a slowdown in exports, driven by reduced industrial production. The medium-term outlook appears generally positive, although it remains vulnerable to potential risks. Growth is projected to average 4.9% over the period from 2024 to 2026. This growth will be underpinned by several factors, including the commencement of gas production in the latter half of 2024, sustained levels of private consumption and investment as prices rebound to pre-crisis levels, increased exports, and the execution of the government's public investment program (World Bank).

Concerning public finances, in 2023, the overall fiscal deficit improved to 2.4% of GDP, a notable improvement from 3.7% of GDP recorded in 2022, primarily attributed to a decrease in capital expenditure. However, the debt-to-GDP ratio saw a slight increase to 48.1% in 2023, marking a 0.8 percentage point rise, mainly due to the depreciation of the exchange rate towards the end of 2023. Despite this increase, a joint Debt Sustainability Assessment conducted by the IMF and World Bank indicates that external debt remains sustainable, with a moderate risk of debt distress. In 2023, the current account deficit showed improvement, decreasing to 10% of GDP from 16.6% of GDP in 2022. This improvement can be attributed to reduced imports of capital goods in the extractive industry, oil, and food products. Moving forward, fiscal pressures are expected to alleviate, resulting in an average budget deficit of 2% of GDP in 2024. This improvement will be supported by revenue from gas, reduced current transfers, and increased tax revenue mobilization. By 2026, the fiscal deficit is forecasted to narrow even further to 0.2% of GDP. Additionally, debt levels are anticipated to gradually decrease, reaching 47.7% of GDP by 2024 (World Bank). Average inflation has halved from its peak of 9.5% in 2022 to 5% in 2023. It is anticipated to continue decreasing to 2.5% in 2024, attributed to a reduction in external pressures.

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 10.8% in 2022 (from 11.3% one year earlier), with around 31.8% of the population living in poverty (World Bank, latest data available). Mauritania is considered a lower-middle-income country, with a GDP per capita (PPP) estimated at USD 6,295 in 2022 by the World Bank.

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 22.2% of the GDP and employs 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, practiced by Mauritanian nomads, is also a significant area of activity. The latest projections by the USDA for agricultural production in the 2023/24 season are as follows: rice 240,000 tonnes, sorghum 70,000 tonnes, and corn 15,000 tonnes.

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 is expected by 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 24% of the country’s GDP and roughly 77% of its exports (data from the Extractive Industries Transparency Initiative). Overall, the secondary sector (including construction) contributes to 30.2% of the country's GDP and employs 15% of its workforce. The manufacturing sector accounts for a mere 6% of GDP.

The tertiary sector represents more than 33.7% of the GDP and employs 52% of the workforce. The main sub-sectors are transport and telecommunications. Despite the potential in tourism, the sector has yet to attract significant foreign investment due to a lack of infrastructure and regulatory frameworks. As of April 2023, there are currently 16 banks, both national and foreign, operating in Mauritania. However, it's notable that only around 21% of the population actually holds bank accounts.

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	29.5	18.9	51.7
Value Added (in % of GDP)	19.2	34.7	39.8
Value Added (Annual % Change)	4.0	7.7	4.5

Source: World Bank - Latest available data.

 

Find more information about your business sector on our service Market Reports.

 

 

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.

 

 

Find out all the exchange rates daily on our service Currency Converter.

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 104% 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 aims to promote economic integration among West African countries. The country has also signed bilateral trade agreements with several countries, including China and the United States. Mauritania's export composition comprises 35% iron ore (wholly produced by the state-owned mining company SNIM), 31% gold, 28% fishery products, and 3.5% copper. Based on Mauritanian statistics, the primary import category remains petroleum products, accounting for 39% of total imports (including fuel and diesel). This is followed by food products at 23% (such as oils, fats, sugar, and wheat), construction materials at 13% (including processed iron-based products), and equipment goods at 8% (data France Ministry of Finance for 2022).

In 2022, China remained the primary destination for Mauritanian exports, with imports totaling EUR 806 million. However, China's share of Mauritanian exports decreased from 41% in 2021 to 23%. Following were Canada, accounting for 18% (EUR 637 million), and Spain, at 11% (EUR 388 million). 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. The United Arab Emirates was Mauritania's top supplier, providing 18% of total imports, mainly consisting of manufactured goods. Spain ranked as the country's second-largest supplier, contributing 16% of imports, followed by Japan at 7% and France at 6%. Mauritania primarily imports petroleum products (comprising over half of total imports), food items, and equipment goods from Europe (data France Ministry of Finance for 2022).

According to WTO, in 2022, Mauritania's exports reached USD 3.2 billion (down by 2% year-on-year), whereas imports stood at USD 4.6 billion, marking a 19.6% increase vis-à-vis one year earlier. As per services, Mauritania’s exports are historically really low (at USD 219 million in 2022), whereas imports increased notably to USD 1.3 billion. According to the World Bank’s estimates, the total external trade balance for goods and services was negative by 5.7% of GDP in 2022 (from 8.6% one year earlier).

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)

Any Comment About This Content? Report It to Us.