Economy Mauritania
Economy - overview:
Half the population still depends on agriculture and livestock for
a livelihood, even though many of the nomads and subsistence farmers
were forced into the cities by recurrent droughts in the 1970s and
1980s. Mauritania has extensive deposits of iron ore, which account
for nearly 40% of total exports. The decline in world demand for
this ore, however, has led to cutbacks in production. The nation's
coastal waters are among the richest fishing areas in the world, but
overexploitation by foreigners threatens this key source of revenue.
The country's first deepwater port opened near Nouakchott in 1986.
In the past, drought and economic mismanagement resulted in a
buildup of foreign debt. In February 2000, Mauritania qualified for
debt relief under the Heavily Indebted Poor Countries (HIPC)
initiative and in December 2001 received strong support from donor
and lending countries at a triennial Consultative Group review. In
2001, exploratory oil wells in tracts 80 km offshore indicated
potential extraction at current world oil prices. A new investment
code approved in December 2001 improved the opportunities for direct
foreign investment. Ongoing negotiations with the IMF involve
problems of economic reforms and fiscal discipline. Substantial oil
production and exports probably will not begin until 2005. Meantime
the government emphasizes reduction of poverty, improvement of
health and education, and promoting privatization of the economy.
GDP:
purchasing power parity - $5.195 billion (2003 est.)
GDP - real growth rate:
4.5% (2003 est.)
GDP - per capita:
purchasing power parity - $1,800 (2003 est.)
GDP - composition by sector: agriculture: 25% industry: 29% services: 46% (2001 est.)
Population below poverty line: 50% (2001 est.)
Household income or consumption by percentage share: lowest 10%: 2.5% highest 10%: 30.2% (2000)
Distribution of family income - Gini index:
37.3 (1995)
Inflation rate (consumer prices):
7% (2003 est.)