The economic context of Mauritania

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. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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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

 

 

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

Economic Portals

Mauritania Internet Guide (In French)