Nouakchott, July 26, 2024 – Despite a slowdown in economic growth in 2023, lower inflation and improved fiscal and external balances have helped strengthen Mauritania's macroeconomic stability. Although growth has moderated, it remains above the global average and that of Sub-Saharan Africa.
This performance is attributed to cyclical factors such as monetary policy tightening and fragile dynamics in key sectors like rainfed agriculture and extractive industries. However, structural factors, including limited optimization of human capital, continue to constrain long-term growth potential.
Inflation declined faster than expected, from 9.6% in 2022 to 5% in 2023, due to lower food and oil prices and tight monetary policy. Additionally, the current account deficit narrowed owing to positive changes in import prices on international markets and a decline in capital goods imports.
Nevertheless, Mauritania continues to face structural challenges affecting its long-term growth, such as weak human capital development. The report highlights a decline in per capita human capital wealth over the past two decades despite an increase in the overall stock. It also notes the low utilization of human capital: children born in Mauritania today can expect to utilize only 15% of their human capital potential by age 18.
Entitled "Maximizing the Return on Human Capital in Mauritania for Increased Wealth and Shared Prosperity," the report emphasizes optimizing human capital use to stimulate productive and inclusive growth. Recommendations focus on strengthening education and vocational training while removing social and legal barriers for women and youth to fully exploit the country's economic potential.
"It is important for Mauritania to continue its efforts to optimize the use of its human capital and develop resilience strategies in the face of climatic, economic, and social shocks. Priorities include improving education, reducing gender inequalities, and putting in place more inclusive economic policies," said Urbain Thierry Yogo, Lead Economist for Mauritania.
The report proposes several recommendations to support inclusive and sustainable growth: adopting a prudent fiscal framework anticipating gas production; improving selection and implementation of public investment projects; better integrating women and youth into the labor market.