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Middle East and North Africa
Mauritania |
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Last reviewed: 1 July 2008 |
Country information
ECONOMY
Basic Economic Facts
GDP: US$1.9 billion (2005)
GDP (PPP) per capita: US$ 2600 (2006 est)
Annual Growth: 11.2% (2006 est)
Inflation: 8.9% (2006 est)
Major Industries: Exports: iron ore, fish and fish products. Imports: machinery and equipment, petroleum products, capital goods, foodstuffs, consumer goods
Major trading partners: France, UK, US, China (2005). Export partners: Italy, France, Germany, Japan
Exchange rate: US$1 = 266 Mauritanian Ouguiya (May 2007); £1 = 528 Ouguiya)
A majority of the population still depends on agriculture and livestock for a livelihood, even though most of the nomads and many subsistence farmers were forced into the cities by recurrent droughts in the 1970s and 1980s.
Mauritania has a diverse range of mineral resources, including gold and diamonds. However, exploitation of these resources has been limited by the country’s poor infrastructure. A significant iron ore mining industry contributes up to 11% of the country’s GNP, as well as 40% of export earnings.. A significant expansion in the mining sector should help to raise real growth in non-oil GDP to 5.6% in 2007.
Mauritania has offshore oil and gas deposits and a growing upstream oil industry. Offshore oil extraction began in February 2006. GDP surged 11.2% in 2006, one of the highest growth rates in the world. However, technical difficulties affected oil production in the second half of 2006 causing a sharp fall in output from 75,000 barrels per day in February to around 22,000 barrels p/d in December. Production is expected to stabilise at around 30,000 barrels p/d in 2007 thereby moderating recent GDP growth.It is one of the four oil refining countries in West Africa. Its downstream oil industry is a significant element in the country’s economy. Oil derived products supply 95% of the country’s commercial energy needs.
In the past, drought and economic mismanagement resulted in a build-up of foreign debt. In February 2000, Mauritania qualified for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and in December 2001 received strong support from donor and lending countries at a triennial Consultative Group review. In June 2006 Mauritania had its Multilateral debt cancelled under the G8 Multilateral Debt Relief Initiative (MDRI). Ongoing negotiations with the IMF involve problems of economic reforms and fiscal discipline. The government’s main objectives remain the reduction of poverty, improvement of health and education, and promoting privatisation of the economy.
If the promising oil and gas prospects now being explored offshore are brought to fruition, Mauritania will have the chance to diversify its currently narrow export base. In addition, Mauritania has Least Developed Country status. This means it can export to the EU most goods (provided that they meet EU standards) on a tariff-free basis.
