Islamic Republic of Mauritania: 2017 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Islamic Republic of Mauritania
IMF Staff Country Reports, October 16, 2017
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- Islamic Republic of Mauritania: 2017 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Islamic Republic of Mauritania
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Bibliographic details
- Published: October 16, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484324660.002
Overview
- Publication date: October 16, 2017
- Core finding: Continued challenging external environment for Mauritania, driven by low and volatile metal prices.
- Main consequence identified: A steep decline in iron ore prices in 2014–15 "took away half of exports, widened the fiscal deficit, put pressure on reserves, and exposed bank vulnerabilities."
Macroeconomic impact of the commodity shock
- Iron ore price shock period: 2014–15.
- Quantified impact as presented: "took away half of exports."
- Resulting macroeconomic effects:
- Widened the fiscal deficit.
- Put pressure on reserves.
- Exposed bank vulnerabilities.
Policy response and stabilization
- Fiscal and external sector measures taken in 2016:
- Authorities adjusted the budget significantly in 2016.
- Allowed the exchange rate to adjust.
- Mobilized foreign grants and loans.
- Outcomes attributed to these measures:
- Contributed to reducing external imbalances.
- Helped maintain macroeconomic stability.
- Financial sector strengthening:
- Authorities are strengthening bank supervision.
Structural reforms and growth strategy
- National strategy under preparation: "a national strategy for accelerated and inclusive growth for 2016–30."
- Components highlighted:
- Structural reforms.
- A large-scale, foreign-financed infrastructure investment program.
- Intended objectives of the strategy and reforms:
- Support jobs.
- Support growth.
- Support diversification.
Subjects and keywords (as presented)
- Subject: Exchange rates, Expenditure, External debt, Foreign exchange, Public and publicly-guaranteed external debt, Public debt, Public investment spending
- Keywords: AFRITAC West, central bank statute, commodity price development, CR, debt, East Africa, exchange rate, Exchange rates, Global, ISCR, liquidity pressure, Middle East, North Africa, policy choice, Public investment spending, real GDP, West
Content in this bundle
- Country Report