Economy of Mauritania

Economy of Mauritania
Currency	Ouguiya
Fiscal year	Calendar Year
Trade organisations	AU, WTO
Statistics
GDP	$4.096 billion (2012 est.)
GDP growth	5.3% (2012 est.)
GDP per capita	$2,100 (2009 est.)
GDP by sector	agriculture (12.5%), industry (46.7%), services (40.7%) (2008)
Inflation (CPI)	7.3% (2007)
Population below poverty line	40% (2004)
Gini coefficient	39 (2000)
Labour force	1.318 million (2007)
Labour force by occupation	agriculture (50%), industry (10%), services (40%) (2001)
Unemployment	30% (2008 est.)
Main industries	fish processing, oil production, mining of iron ore, gold, and copper; gypsum deposits have never been exploited
Ease of Doing Business Rank	159th
External
Exports	$2.878 billion (2012 est.) (2012)
Export goods	iron ore, fish and fish products, gold
Main export partners	China 41.6%, France 10.4%, Spain 7.1%, Italy 7%, Netherlands 5.4%, Belgium 4.7% (2008)
Imports	$3.152 billion (2012 est.) (2012)
Import goods	machinery and equipment, petroleum products, capital goods, foodstuffs, consumer goods
Main import partners	France 17%, China 8.9%, Netherlands 6.5%, Spain 6.1%, Belgium 5.5%, United States 5.1% (2008)
Public finances
Public debt	N/A (2004)
Revenues	$1.568 billion (2012 est.)
Expenses	$1.643 billion (2012 est.)
Economic aid	$220 million (recipient) (2000)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

A majority of the population of Mauritania depends on agriculture and livestock for a livelihood, even though most of the nomads and many 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 almost 50% of total exports. The decline in world demand for this ore, however, has led to cutbacks in production. With the current rise in metal prices, gold and copper mining companies are opening mines in the interior. 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 deep water port opened near Nouakchott in 1986. In recent years, drought and economic mismanagement have resulted in a buildup of foreign debt. In March 1999, the government signed an agreement with a joint World Bank-International Monetary Fund mission on a $54 million enhanced structural adjustment facility (ESAF). The economic objectives have been set for 1999-2002. Privatization remains one of the key issues.

Mauritanian exports in 2006

Macro-economic trend

This is a chart of trend of gross domestic product of Mauritania at market prices estimated by the International Monetary Fund with figures in millions of Mauritanian Ougulyas.

Year	Gross Domestic Product	US Dollar Exchange	Inflation Index (2000=100)
1980	37,211	45.93 Ouguiyas	23
1985	60,197	77.07 Ouguiyas	36
1990	97,819	80.64 Ouguiyas	52
1995	158,443	129.76 Ouguiyas	73
2000	258,245	240.00 Ouguiyas	100
2005	514,642	265.55 Ouguiyas	144

Current GDP per capita of Mauritania grew 82% in the Sixties reaching a peak growth of 166% in the Seventies. But this proved unsustainable and growth consequently scaled back to 14% in the Eighties. Finally, it shrank by 29% in the Nineties. Mean wages were $0.97 per manhour in 2009.

Diversification

In 2007, mining industries accounted for well over 35 per cent of the Mauritanian economy, with the fish industry so much as 54% (with big changes between these industries in the power relationship).^{[citation needed]} Diversification of the economy into non-mining industries remains a long-term issue. Mauritania is a net importer of food, reportedly importing 70% of its domestic food needs.

Dispute with Woodside Petroleum

In February 2006, the Mauritanian government denounced amendments to an oil contract made by former leader Maaouiya Ould Taya with Woodside Petroleum, an Australian company. In 2004, Woodside had agreed to invest $US 600 million in developing Mauritania's Chinguetti offshore oil project. The controversial amendments, which Mauritanian authorities declared had been signed "outside the legal framework of normal practice, to the great detriment of our country", could cost Mauritania up to $200 million a year, according to BBC News. Signed by Woodside two weeks after the February 1, 2005 legislation authorizing the four amendments, they provided for a lower state quota in the profit-oil, and reduced taxes by 15 percent in certain zones. They also eased environmental constraints, and extended the length and scope of the exploitation and exploration monopoly, among other measures.

The disputed amendments were signed by former oil minister Zeidane Ould Hmeida in February 2004 and March 2005. Hmeida was arrested in January 2006 on charges of "serious crimes against the country's essential economic interests".

Nouakchott's authorities declared that the government would likely seek international arbitration, which Woodside (which operated for Hardman, BG Group, Premier Oil, ROC Oil, Fusion, Petronas, Dana Petroleum, Energy Africa and the Hydrocarbons Mauritanian Society) also contemplated.

Discovered in 2001, Chinguetti has proven reserves of about 120,000,000 barrels (19,000,000 m³) of oil. At the end of December 2005, authorities estimated that in 2006, the oil profits would be 47 billion ouguiyas (about US$180 million) and represent a quarter of the state budget, according to RFI.

The Australian Federal Police are investigating Woodside for allegations of bribery and corruption in Mauritania (according to the Sydney Morning Herald ).

Some U.S. oil companies are alleged to be playing a part in Mauritania's oil related corruption.

See also

• Economy of Africa
• Slavery in Mauritania

References

 This article incorporates public domain material from websites or documents of the CIA World Factbook.

External links

• Economy of Mauritania at the Open Directory Project
• Mauritania latest trade data on ITC Trade Map