Climate Change

Selected Issues

The re-elected government has laid out a bold reform agenda since taking office in May. Following a period of high inflation, the convergence of the economy toward balance is creating the opportunity to focus on ambitious structural reforms to address medium-term challenges. Delivering on the government’s three main economic goals of boosting productivity, maintaining fiscal sustainability and ensuring economic resilience will help strengthen Australia’s economy amid an uncertain global outlook.

Liberia is at a pivotal stage in its post-conflict recovery, where infrastructure investment is crucial for economic growth and stability. The IMF's Fiscal Affairs Department conducted a Public Investment Management Assessment (PIMA) Update and Climate PIMA to evaluate Liberia's public investment management institutions and their climate resilience. The assessment found modest improvements in public investment institutions since 2016, with relative strengths in planning but weaknesses in implementation of investment projects. Recommendations include enhancing project scrutiny, strengthening PPP oversight, and integrating climate considerations into investment planning. These actions aim to improve infrastructure governance, boost economic resilience, and address climate vulnerabilities.

The IMF conducted a repeat Tax Administration Diagnostic Assessment Tool (TADAT) evaluation of the Republic of Tajikistan's tax administration system from October 17 to November 1, 2025. The assessment aimed to establish an updated baseline for tax administration performance, identify areas for potential reform, and evaluate achievements since an assessment in 2019. The evaluation highlights significant improvements across all nine performance outcome areas. Key strengths include a modern integrated tax management information system supporting wide range of taxpayer services comprehensive electronic filing and payment systems, risk-based audits, and data matching capabilities. Areas for development include development of compliance improvement plans, including for the large taxpayer segment, and implementing formal binding tax rulings.

Since the 2024 Art. IV consultation, the authorities have aimed to balance disinflation with steady growth. Following a fiscal expansion in 2024, the deficit was reduced substantially in 2025 and, despite policy rate cuts, real interest rates remain high. Inflation (31 percent y/y in December) is falling slowly, and growth remains solid (4.0 percent y/y in 2025:Q1-Q3). With unchanged policies, including further rate cuts expected by markets, inflation is likely to continue to recede but remain in double digits and above the CBRT’s targets, and activity would fall short of its potential. Inflation would likely stay above targets and limit economic growth. Türkiye’s elevated inflation is also taking a toll on the financial sector and inequality, while productivity growth has been lackluster. Inflation risks remain on the upside, while a volatile external environment will require vigilance, particularly on FX risks. Delayed reanchoring of inflation expectations would also raise the probability of a shock that could reignite inflation and undermine confidence.

Thailand’s economy has been resilient in an uncertain global economic environment. However, it faces salient structural challenges, cyclical headwinds and political uncertainty. GDP growth is projected to slow from 2.1 percent in 2025 to 1.6 percent in 2026, and inflation average -0.1 percent in 2025 and 0.4 percent in 2026.