Islamic Republic of Mauritania: Fifth Reviews Under the Arrangements Under the Extended Credit Facility and the Extended Fund Facility, Request for a Waiver of Applicability of Performance Criteria, and Fourth Review Under the Arrangement Under the Re

Economic growth slowed to 6.3 percent in 2024 (compared to 6.8 percent in 2023), reflecting a sluggish extractive sector and is projected to slow further to 4.2 percent in 2025 due to an expected contraction in the extractive sector and a slowdown in the non-extractive sector. Inflation is expected to remain contained. After widening in 2024, the current account is projected to narrow in 2025, mainly reflecting a lower trade deficit due to favorable terms of trade and reduced imports of capital goods and services following the completion of the first phase of the Greater Tortue Ahmeyim (GTA) project construction. Recent cuts in Official Development Assistance (ODA) have been partly offset for 2025 through reallocations from various donors, but the sustainability of these temporary measures remains uncertain. This extends downside risks into 2026, with potential fiscal implications. Persistent challenges, such as inadequate infrastructure, governance weaknesses, high vulnerability to external shocks, and limited economic diversification, continue to constrain Mauritania’s long-term economic development. Additionally, frequent and severe climate-related disasters create large adaptation needs.