The International Monetary Fund (IMF) has concluded an agreement of $16.56 million with Mauritania as the West African nation’s economic recovery has been confirmed with growth estimated at 3.5% in 2017 and 2018.
According to the international lender, the Sahel nation’s international reserves reached $849 million at the end of 2017 and the budget achieved a positive non-grant primary balance of 0.3% of non-extractive GDP in 2017.
The external current account deficit (excluding extractive sector imports) also improved, contracting from 11 percent of GDP in 2016 to 8 percent in 2017. Borrowing slowed, with external debt stable at 72 percent of GDP.
The economic outlook is favorable owing to sustained commodity prices and ongoing economic policy efforts, the Fund said.
The institution notes, however, that significant challenges remain to achieve macroeconomic stability, attain strong and inclusive growth that creates jobs and reduces poverty, and improves the business environment and economic governance.
Governed by a semi-presidential system, Mauritania has a significant place in West Africa, given its geographical location.
The country has been able to achieve steady growth since 2010 and has prevented security problems in the region from spreading into the country.
The national income per capita in Mauritania, which has annual revenue of $4.8 billion, is around $400.