Economic Outlook and Challenges in Mauritania for 2023-2024

Introduction

‍In 2022, Mauritania's economy experienced a significant rebound despite global challenges. This momentum is expected to continue into 2023-2024, with significant issues and opportunities, particularly in terms of climate change and green financing.

Recent Macroeconomic Evolution

• Mauritania's economy recorded a 5.3% growth in 2022, driven by increases in extractive and agricultural production.
• However, inflation rose to 9.6% due to global price increases in food and oil.
• In response, the Central Bank of Mauritania adopted a restrictive monetary policy.

Budgetary Challenges and Debt

• The budget deficit _widened to 1.2% of GDP in 2022, mainly due to increased current expenditures.
• Debt restructuring efforts with Kuwait and Saudi Arabia helped reduce the debt to 48.4% of GDP.

Short-term Prospects and Risks

• For 2023 and 2024, the GDP is expected to grow, supported by the primary and extractive sectors and gas exploitation.
• Inflationary pressures are likely to persist, although monetary policy may reduce inflation in the medium term.
• The budget deficit remains a challenge, despite a stabilized debt at around 49% of GDP.

Climate Change and Public Policies

• Mauritania faces significant needs in climate financing without dedicated mechanisms.
• The private sector's involvement is limited, and resources mobilized mainly come from international partners.
• It's crucial to adopt green financial instruments, create a dedicated green fund, and involve the private sector in climate change adaptation strategies.

Conclusion

‍Mauritania is confronting major economic and environmental challenges for 2023-2024. Opportunities in climate financing and green growth are critical for the country's economic sustainability.