NOUAKCHOTT, Mauritania, August 02, 2023-/African Media Agency(AMA)/-According to the sixth edition of Report on the economic situation in Mauritaniafrom the World Bank, the country is continuing its recovery from the economic and social impacts of the COVID-19 pandemic with growth accelerating from 2.4% in 2021 to 5.2% in 2022.
However, Mauritania is faced with multiple challenges such as vulnerability to shocks including security risks in the Sahel region, the prolonged conflict in Ukraine and climatic risks linked to the recurrence of droughts and floods, and which could lead to a slowdown in economic activity and an increase in poverty and inequality.
According to the report, dependence on the extractive sector also weighs on the achievement of inclusive growth and poverty reduction objectives. Indeed, the strong variation in commodity prices affects the stability of growth while the high concentration of economic activities in the extractive sector impacts inclusion. In addition, the floods, because of their significant human and infrastructure impact, cost 3% of the GDP of the Mauritanian economy during the last rainy season.
In this context, this sixth edition emphasizes the importance of identifying the main factors of flooding, followed by a presentation of the multiple solutions considered and proposed. Urbanization associated with population growth and rural exodus, is one of the most common causes of the increase in impermeable surfaces and the socio-economic vulnerability of urban areas to flooding.
“Addressing the new challenges of climate change requires ensuring the implementation of adaptation measures and developing human capital in this same context of resilience and inclusion. Thus, the current Mauritanian challenges present themselves as fundamental opportunities to be seized,” affirms Cristina Isabel Panasco Santos, Resident Representative of the World Bank in Mauritania.
Finally, the report proposes priority reform options to strengthen macroeconomic stability and resilience to climate shocks in order to mitigate their economic and social impact.
Controlling inflation and its impact on the most vulnerable, an emergency preparedness and response framework, and preserving the fiscal space necessary for growth-enhancing investments are solutions and reforms proposed in the report.
Finally, the adoption of a new law on urban planning and construction in order to allow more resilient urban development is suggested as one of the priority opportunities.
Distributed by African Media Agency (AMA) for World Bank.
Source : African Media Agency (AMA)