PANAPRESS
Panafrican News Agency
US: IMF says Mauritania's economic developments favourable
Nw York, US (PANA) - The International Monetary Fund (IMF) says Mauritania's economic developments remained favourable, projecting that economic growth is estimated to reach 6.4 per cent this year.
A statement on Saturday, obtained by PANA in New York, said a team from IMF by Ms. Mercedes Vera-Martin visited Nouakchott from 20-30 October to conduct discussions for the 2014 Article IV consultation.
The IMF statement quoted Ms. Vera-Martin, as saying: "Mauritania’s economic developments remained favourable, despite deteriorating terms of trade due to a decline in global iron ore prices."
She said that, economic growth was now estimated to reach 6.4 per cent in 2014 and a rebound
in fishing activity and sustained activity in the mining sector would more than compensate for weaker performances in the oil and manufacturing sectors.
She noted that, inflation had remained contained, with an annual average of 3.5 per cent, while fiscal performance was expected to remain in line with the 2014 budget, with an overall deficit, excluding grants, of 1.7 per cent of GDP.
"The current account deficit is expected to narrow to 19 per cent of GDP and mostly be financed by foreign direct investment, and the international reserve coverage is expected to remain adequate, at about 6½ months of imports excluding those associated with oil and mining activities.
"Contained inflation and stable external reserves continue to provide buffers against potential shocks to the economy," the IMF official stressed.
Ms. Vera-Martin also stated: "Despite lower terms of trade, the macroeconomic outlook remains favorable supported by an expansion in mining capacity over the medium term and real GDP growth in 2015 is expected at 6 per cent, as higher domestic consumption will partially compensate for the deteriorating external outlook.
"The central bank continues to make progress in strengthening the resilience of the financial sector and plans to strengthen monetary policy formulation and implement reforms in the foreign exchange market to sustain private sector development over the medium term.
"An upcoming IMF financial stability assessment will provide recommendations to further strengthen the financial sector, facilitate long-term credit to the private sector, and encourage financial deepening and inclusion," she said.
She further said that the mission welcomed the authorities’ prudent management of macroeconomic policy and their commitment to preserve fiscal sustainability, safeguard financial stability and encourage private sector development.
-0- PANA AA/MA 1Nov2014
A statement on Saturday, obtained by PANA in New York, said a team from IMF by Ms. Mercedes Vera-Martin visited Nouakchott from 20-30 October to conduct discussions for the 2014 Article IV consultation.
The IMF statement quoted Ms. Vera-Martin, as saying: "Mauritania’s economic developments remained favourable, despite deteriorating terms of trade due to a decline in global iron ore prices."
She said that, economic growth was now estimated to reach 6.4 per cent in 2014 and a rebound
in fishing activity and sustained activity in the mining sector would more than compensate for weaker performances in the oil and manufacturing sectors.
She noted that, inflation had remained contained, with an annual average of 3.5 per cent, while fiscal performance was expected to remain in line with the 2014 budget, with an overall deficit, excluding grants, of 1.7 per cent of GDP.
"The current account deficit is expected to narrow to 19 per cent of GDP and mostly be financed by foreign direct investment, and the international reserve coverage is expected to remain adequate, at about 6½ months of imports excluding those associated with oil and mining activities.
"Contained inflation and stable external reserves continue to provide buffers against potential shocks to the economy," the IMF official stressed.
Ms. Vera-Martin also stated: "Despite lower terms of trade, the macroeconomic outlook remains favorable supported by an expansion in mining capacity over the medium term and real GDP growth in 2015 is expected at 6 per cent, as higher domestic consumption will partially compensate for the deteriorating external outlook.
"The central bank continues to make progress in strengthening the resilience of the financial sector and plans to strengthen monetary policy formulation and implement reforms in the foreign exchange market to sustain private sector development over the medium term.
"An upcoming IMF financial stability assessment will provide recommendations to further strengthen the financial sector, facilitate long-term credit to the private sector, and encourage financial deepening and inclusion," she said.
She further said that the mission welcomed the authorities’ prudent management of macroeconomic policy and their commitment to preserve fiscal sustainability, safeguard financial stability and encourage private sector development.
-0- PANA AA/MA 1Nov2014
