Introduction

In 2022, the Mauritanian economy rebounded strongly despite global challenges. This dynamic is expected to continue in 2023-2024, with significant challenges and opportunities, particularly in terms of climate change and green financing.

Recent macroeconomic developments

• The Mauritanian economy recorded a growth of 5.3% in 2022, driven by the increase in extractive and agricultural production.
• However, inflation reached 9.6% due to higher global food and oil prices.
• In response, the Central Bank of Mauritania adopted a restrictive monetary policy.

Budget challenges and debit

• The budget deficit increased to 1.2% of GDP in 2022, mainly due to the increase in current expenditure.

• The debt restructuring efforts of Kuwait and Saudi Arabia have reduced the debt to 48.4% of GDP.

Short-term prospects and risks

• For 2023 and 2024, GDP is expected to grow, supported by the primary and extractive sectors and gas exploitation.
• Inflationary pressures are expected to persist, although monetary policy may reduce inflation over the medium term.
• The budget deficit remains a challenge, despite a debt stabilized at around 49% of GDP.

Climate change and public policies

• Mauritania is facing significant climate finance needs without dedicated mechanisms.
• Private sector participation is limited and resources are mobilized mainly from international partners.
• It is crucial to adopt green financial instruments, create a dedicated green fund and involve the private sector in climate change adaptation strategies.

Conclusion

Mauritania is facing major economic and environmental challenges for 2023-2024. Climate finance and green growth opportunities are essential for the country’s economic viability.