Climate Change

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.

This public sector pay mission scoped the available data and presents an indicative baseline and scenarios for reform. There is limited room for major increases in personnel spending and careful prioritization is needed. If implemented in 2025, adjustments to pension benefits, expanded military and security sector recruitment, and a higher minimum wage for commercial public institutions would leave limited space, over the forecast horizon, for significant across-the-board increases in real wages.

Infrastructure investment is a policy priority for Namibia to address critical gaps and support economic growth. However, a constrained fiscal environment in recent years has contributed to a decrease in public investment and capital stock. The Public Investment Management Assessment (PIMA) finds the strength of Namibia’s institutions is broadly in line with comparators, however there is scope for improvement. In particular the rate of execution of the Development Budget is a persistent challenge and there are weaknesses in project preparation, appraisal, selection and budgeting. Namibia is at an early stage in incorporating climate-sensitivity into public investment management and has a clear opportunity to get this right. Priority recommendations relating to project preparation, appraisal and budgeting and mainstreaming climate change considerations into strategic planning, offer potential to enhance the efficiency and sustainability of public investment management.