Islamic Republic of Mauritania: Requests for an Extended Arrangement Under the Extended Fund Facility and Arrangement Under the Extended Credit Facility, Cancellation of the Current Arrangements Under the Extended Fund Facility and the Extended Credit Facility, and Fifth Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania

Economic growth slowed to 4.0 percent in 2025 (compared to 6.3 percent in 2024), due to a contraction in the extractive sector and a slowdown in the non-extractive sector. Inflation has been on an upward trend since July 2025, with upward pressures partly explained by the disruptions along the Mali border, which affected key trade corridors. After widening in 2024, the current account (CA) narrowed in 2025, mainly reflecting lower imports related to the GTA project, and higher gold receipts alongside the start of LNG exports. The war in the Middle East has impacted Mauritania through an increased oil import bill and fiscal costs from the temporary subsidies under the newly introduced automatic fuel price mechanism, subsidies on butane gas cylinders, and targeted social protection measures. The social registry enables the government to expand targeted cash transfers in response to further adverse price developments, including increasing food prices. Structurally, persistent challenges, such as inadequate infrastructure, governance weaknesses, high vulnerability to external shocks, and limited economic diversification, continue to constrain Mauritania’s long-term economic development. Additionally, frequent and severe climate-related disasters create large adaptation needs.