Mauritania: The IMF confirms the economic recovery of the country and plans a new disbursement of $ 24 million .
Following a mission to Nouakchott from 8 to 21 March 2018, directed by Eric Mottu , the services of the International Monetary Fund (IMF) and the Mauritanian authorities have reached a preliminary agreement at the service level, with a view to concluding the first review of the program supported by the Extended Credit Facility (ECF).
Subject to the approval of the IMF’s Executive Board and Board of Directors, Mauritania will receive a second disbursement of $ 16.56 million Special Drawing Rights (SDRs), or approximately $ 24 million, as a result of the review of the file planned for May 2018.
According to the Bretton Woods institution, the economic recovery in Mauritania has been confirmed with growth estimated at 3-3.5% in 2017 and 2018, and moderate inflation at 2.3% on average, in 2017.
In addition, international reserves reached $ 849 million at the end of 2017 (5.1 months of non-extractive imports) and the budget achieved a positive non-grant primary balance of 0.3% of non-extractive GDP in 2017, continuing the consolidation efforts started in 2015-16 following the decline in commodity prices.
The external current account deficit (excluding extractive sector imports) also fell from 11% of GDP in 2016 to 8% in 2017. Indebtedness slowed down, with external debt stabilizing at 72% GDP.
“In this context, the economic and financial program of the authorities is on track and its implementation has been satisfactory,” said the IMF. Adding that “the economic outlook is favorable, especially given the sustained price of commodities and economic policy efforts”.
The institution notes, however, that “significant challenges remain to achieve macroeconomic stability, achieve strong and inclusive growth that creates jobs and reduces poverty, and improves the business environment and economic governance”.
As a reminder, on December 6, 2017, the Board of Directors of the International Monetary Fund (IMF) approved a three-year agreement under the ECF with Mauritania, amounting to SDR 115.92 million. approximately $ 163.9 million or 90% of Mauritania’s quota.
This agreement will support the country’s economic and financial reform program.
This contributes to fostering inclusive and diversified growth of the Mauritanian economy in order to improve the standard of living of the population, maintain macroeconomic stability, strengthen debt sustainability, and reduce poverty.