The World Bank’s latest economic update on Mauritania reveals a slowdown in growth to 5.2% in 2024, down from 6.4% in 2023, primarily due to reduced extractive production and moderated public spending. Despite this, the nation’s macroeconomic fundamentals remain robust, supported by prudent fiscal policies and declining global food and energy prices. The medium-term outlook is cautiously optimistic, with growth projected at 4.9% between 2025 and 2027, though risks from global volatility persist.
The report stresses the importance of economic diversification beyond extractive industries by reinvesting mining revenues into sectors like agriculture, services, and the digital economy. This approach aims to stabilize the economy while promoting inclusive growth. Social policy reforms are also highlighted, particularly the shift from generalized subsidies to targeted cash transfer programs such as Tekavoul, which is aiding poverty reduction efforts.
Although social protection programs show promise, benefit levels remain low. Recommendations include updating the social registry, refining subsidy allocations, enhancing institutional coordination, and expanding economic inclusion initiatives. Developing pathways for beneficiaries to transition out of assistance will further strengthen resilience against economic and climate shocks.
— new from World Bank