The IMF Expects Mauritania's Economy to Shrink by 2 percent

  • Nouakchott, Mauritania
  • 25 April 2020

The International Monetary Fund expected the Mauritanian economy to shrink by 2 percent in 2020, and a deficit in gross domestic product estimated at 3.4 percent, while it granted the country a loan of 130 million dollars to fight the Corona epidemic.

The "Monetary Fund" announced that the loan aims to support the urgent needs required by the Mauritanian balance of payments resulting from the Corona crisis estimated at 370 million dollars, which raised the expenses of health and social protection services.

According to the IMF, the Corona epidemic has disastrous economic impacts on the countries in which it has spread. Indicating that the economic prospects deteriorated rapidly in the near term, as it is estimated that growth will be negative with serious difficulties for the population.

Mauritania recorded 7 Corona infections, including 1 death, and 6 cures.

In its new report on the outlook for the global economy, the Fund revealed that the Coronavirus pandemic is causing high human costs worldwide, and the necessary protection measures severely affecting economic activity.

Therefore, global economy is expected to shrink sharply by minus 3 percent in 2020, which is much worse than during the 2008-2009 financial crisis, according to the report.

Regarding the future outlook, the report indicated that the scenario that assumes that the epidemic will fade in the second half of 2020 and containment efforts can be phased out, the global economy is expected to grow by 5.8 percent in 2021.

Source (Anatolia Agency, Edited)

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