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Nouakchott, July 26, 2024 ¨C Despite a slowdown in economic growth in 2023, lower inflation and improved fiscal and external balances helped strengthen macroeconomic stability. Although growth has moderated, it remains above the global average and that of Sub-Saharan Africa.

This performance is the result of cyclical factors, such as monetary policy tightening and the fragile dynamics of some key sectors such as 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, thanks to lower food and oil prices, as well as tight monetary policy. In addition, the current account deficit narrowed, reflecting a positive evolution of import prices on the international markets and a decline in capital goods imports.

Nevertheless, Mauritania continues to face structural challenges that affect its long-term growth, such as weak human capital development. In particular, the report highlights a decline in per capita human capital wealth over the past two decades, despite an increase in the overall stock. The report also highlights the challenge of low utilization of human capital: children born in Mauritania today can expect to utilize only 15% of their human capital potential by the age of 18.

Entitled "Maximizing the Return on Human Capital in Mauritania for Increased Wealth and Shared Prosperity," the report focuses on the need to optimize the use of human capital to stimulate productive and inclusive growth. To achieve this, the report's recommendations emphasize the importance of strengthening education and vocational training as well as removing social and legal barriers, especially for women and youth, in order 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, such as adopting a prudent fiscal framework in anticipation of gas production, improving the selection and implementation of public investment projects, and better integrating women and youth into the labor market.