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.

purchasing power parity - $4.891 billion (2002 est.)

3.3% (2002 est.)

purchasing power parity - $1,700 (2002 est.)

agriculture: 25%
industry: 29%
services: 46% (2001 est.)

50% (2001 est.)

3% (2002 est.)

786,000 (2001)

agriculture 50%, services 40%, industry 10% (2001 est.)

21% (1999 est.)

fish processing, mining of iron ore and gypsum

2% (2000 est.)