Mauritania's 2024 Finance Bill: A Path to Robust Economic Growth and Prudent Fiscal Management

National Economic Context

‍In 2024, Mauritania is poised for a significant economic turn. The Finance Bill for the year is built on an optimistic growth forecast of 5.6%, marking an acceleration from 4.2% in 2023. This growth stems from a deliberate economic strategy to strengthen national performance across various sectors.

Deficit Reduction

‍Special attention is given to the primary non-extractive budget deficit, projected at 5.3% of the non-extractive GDP. This represents an improvement from 6.1% in 2023. The strategic goal is to bring it down to a sustainable level, in line with the ambitions to keep public debt below the high indebtedness threshold. These efforts are supported by reforms in taxation and budget management.

Dynamics of Key Sectors

‍The fisheries sector, despite a production decline in 2023, is expected to rebound. Agriculture is forecasted to grow significantly, with a projected 17.3% increase in 2023, thanks to the government's new agricultural policy. The livestock sector also shows signs of robustness, with expected growth of 5.5% in 2023 and 5.3% in 2024.

Secondary Sector Expansion

‍The secondary sector, crucial for Mauritania's economic diversification, is expected to record stable growth. After a 12% recovery in 2022, it stands at 6.1% in 2023 and is anticipated to reach 6.4% in 2024. This growth is largely driven by industrial production, especially in mining (gold and gas) and investments in the construction sector.

Tertiary Sector Prospects

‍The tertiary sector, a pillar of economic growth, is expected to register a growth of 6.2% in 2023, with even more promising prospects for 2024. The strong performance of service activities, especially in the financial sector, plays a key role in this positive dynamic.

Inflation and Price Control

‍A continuous deceleration in the general price level has been observed since early 2023, with an average annual inflation rate of 8.2% in August, down from 9.9% in January. This downward trend reflects the stabilization of key product prices like grains and energy products.

Conclusion

‍Mauritania's 2024 Finance Bill represents a strategic balance between robust economic growth, prudent fiscal management, and the implementation of essential tax and budget reforms. By focusing on deficit reduction, economic diversification, and inflation control, Mauritania positions itself for a stable and inclusive growth trajectory.