IMF Executive Board Completes the Second Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements and the First Review under the Resilience and Sustainability Facility Arrangement for the Islamic Republic of Mauritania

IMF News, June 4, 2024

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IMF Executive Board Completes the Second Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements and the First Review under the Resilience and Sustainability Facility Arrangement for the Islamic Republic of Mauritania

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• Published: June 4, 2024

Key decisions and program status

• The Executive Board completed the second reviews under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, and the first review under the Resilience and Sustainability Facility (RSF) arrangement for the Islamic Republic of Mauritania.
• Completion permits an immediate disbursement of SDR 21.3 million (approximately US$36.84 million).
  • SDR 2.15 million (about US$3.72 million) under the ECF arrangement.
  • SDR 4.29 million (about US$7.42 million) under the EFF arrangement.
  • SDR 14.86 million (about US$25.70 million) under the RSF arrangement.
• The Executive Board’s decision was taken on a lapse-of-time basis.
• Performance in IMF-supported programs under the ECF/EFF and the RSF arrangements is on track and implementation has been satisfactory.
• All end-December quantitative performance criteria (QPCs) were met except for the deficit of the non-extractive primary balance (NEPB), which recorded a marginal breach due to an unexpected project loan disbursement for the statistical agency in December; the Executive Board granted a waiver of nonobservance.
• December 2023 and March 2024 structural benchmarks (SBs) were met. The April 2024 reform measure (RM) under the RSF arrangement was also met.

Economic outlook and recent developments

• 2024 growth and inflation
  • Real GDP growth is expected to reach 4.3 percent in 2024 compared to 3.4 percent in 2023.
  • Growth is driven by the performance of the non-extractive sector.
  • Inflation slowed to 2.7 percent in March 2024 compared to 8.2 percent in March 2023, reflecting the downturn in commodity prices and monetary policy tightening.
• Fiscal and external developments
  • The non-extractive primary balance (NEPB), including grants, amounted to -5.3 percent of GDP at end-2023 (compared to -7.6 percent in 2022).
  • The current account deficit is estimated at 10.0 percent of GDP in 2023 (compared to 14.6 percent at end-2022).
  • International reserves stabilized at 2.0 billion dollars in 2023 (6.3 months of prospective non-extractive imports).
• Risks to the outlook
  • Escalation of geopolitical tensions could produce new terms of trade shocks.
  • Climate disasters could damage infrastructure, arable lands, and agricultural production and keep food insecurity relatively high.
  • Further delays in the start of the Greater Tortue Ahmeyim (GTA) gas project and/or adverse commodity price fluctuations could lower fiscal revenue, increase external financing needs, and worsen the medium-term debt profile.
  • Upside: implementation of future phases of the GTA project or other major mining projects would improve economic growth and the balance of payments.

Policy priorities and program objectives

• Continued implementation of the ECF and EFF arrangements, and of ambitious reform measures supported by the RSF arrangement, will:
  • Help address Mauritania’s medium- and long-term challenges and catalyze additional financing from donors and the private sector.
  • Aim to maintain reserves above the adequate level during the gradual flexibilization of the exchange rate.
  • Strengthen policy frameworks and promote sustainable and inclusive growth.
  • Contribute to development of human capital, private sector growth, poverty reduction, and addressing climate change challenges.

Selected economic indicators, 2022–24 (as reported)

• Poverty rate: 33.6 percent (2021)
• Quota: SDR 128.8 million
• Population: 4.8 million (2022)
• Main exports: iron ore, fish, gold

• National accounts and prices (Annual change in percent; unless otherwise indicated)
  • Real GDP: 6.4 (2022); 3.4 (2023); 4.3 (2024 Proj.)
  • Real extractive GDP: 18.3 (2022); 10.9 (2023); 2.6 (2024 Proj.)
  • Real non-extractive GDP: 3.3 (2022); 1.7 (2023); 4.7 (2024 Proj.)
  • GDP deflator: 1.9 (2022); 2.7 (2023); 4.4 (2024 Proj.)
  • Consumer prices (end of period): 11.0 (2022); 1.6 (2023); 4.0 (2024 Proj.)

• Central government operations (In percent of nonextractive GDP; unless otherwise indicated)
  • Revenues and grants: 24.5 (2022); 22.9 (2023); 23.6 (2024 Proj.)
  • Nonextractive: 17.8 (2022); 17.3 (2023); 18.6 (2024 Proj.)
  • Taxes: 13.1 (2022); 12.8 (2023); 14.0 (2024 Proj.)
  • Extractive: 5.0 (2022); 3.7 (2023); 3.1 (2024 Proj.)
  • Grants: 1.8 (2022)
  • Expenditure and net lending: 28.1 (2022); 25.4 (2023); 25.2 (2024 Proj.)
  • Current: 16.9 (2022); 16.6 (2023); 15.7 (2024 Proj.)
  • Capital: 11.3 (2022); 8.8 (2023); 9.5 (2024 Proj.)
  • Primary balance (excl. grants): -4.4 (2022); -3.4 (2023); -2.5 (2024 Proj.)
  • Overall balance (in percent of GDP): -3.6 (2022); -1.6 (2023)

• Public sector debt (in percent of GDP)1/2/
  • 47.5 (2022); 47.9 (2023); 44.5 (2024 Proj.)

• Money and Credit
  • Broad money: 2.8 (2022); 5.3 (2023); (2024 Proj. not reported)
  • Credit to the private sector: 13.0 (2022); 5.2 (2023); 7.3 (2024 Proj.)

• Balance of Payments
  • Current account balance (in percent of GDP): -14.6 (2022); -10.0 (2023); -7.9 (2024 Proj.)
  • Excl. externally financed extractive capital imports: -0.8 (2022); -1.8 (2023)
  • Gross official reserves (in millions of US$, eop)3/: 1,877 (2022); 2,032 (2023); 1,976 (2024 Proj.)
  • In months of prospective non-extractive imports: 6.2 (2022); 6.3 (2023)
  • External public debt (in millions of US$)2/: 3,970 (2022); 4,033 (2023); 4,025 (2024 Proj.)
  • In percent of GDP: 40.7 (2022); 38.5 (2023); 38.0 (2024 Proj.)
  • Nominal GDP (in millions of US$) [Memorandum]: 9,763 (2022); 10,481 (2023); 10,589 (2024 Proj.)
  • Price of iron ore (US$/Ton) [Memorandum]: 120.7 (2022); 120.3 (2023); 128.4 (2024 Proj.)

• Notes excerpted from source:
  • 1/ Including government debt to the central bank recognized in 2018.
  • 2/ From 2021, including renegociated, previously passive debt to Kuwait.
  • 3/ Excluding hydrocarbon revenue fund.

Press Release No. 24/205 — International Monetary Fund

References

• https://www.imf.org/-/media/images/imf/bios/imfboard.jpg
• The Executive Board
• Islamic Republic of Mauritania and the IMF
• IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet
• Special Drawing Rights (SDRs) -- A Factsheet
• Press Releases
• PRESS CENTER
• https://www.imf.org/en/home