Economic Surveillance
The IMF provides member countries with advice on adopting policies to achieve macroeconomic stability, accelerate economic growth, and alleviate poverty.
The IMF’s surveillance identifies stability risks to member countries and advises governments on potential policy adjustments. This work supports the international monetary system by facilitating the exchange of goods, services, and capital among countries, thereby promoting sound economic growth.
The IMF gives country-specific advice through bilateral surveillance; multilateral surveillance analyzes the international monetary system and global and regional economic developments.
In FY 2026, work commenced on the Comprehensive Surveillance Review (CSR) to analyze the evolving surveillance landscape, including in light of transformative changes, and set surveillance priorities for the next five years. Work also started on the 2026 Financial Sector Assessment Program (FSAP) Review, which will assess the implementation of the 2021 FSAP Review priorities, identify priorities for the future as the financial system landscape evolves, and help guide ongoing efforts to deepen macro-financial analysis in Article IV consultations. Both the CSR and the FSAP Review are expected to conclude in FY 2027.
Bilateral Surveillance
Bilateral surveillance, which takes place through Article IV consultations, is typically carried out during annual or biennial missions to member countries. During Article IV missions, IMF staff and country authorities engage in in-depth dialogue on fiscal, financial, and monetary policies and high-impact structural reforms that can help the country meet its economic and development goals. IMF staff recommendations and the authorities’ views are then discussed by the Executive Board, which concludes the consultation.
The FSAP provides in-depth assessments of countries’ financial sectors. It is a key instrument of IMF surveillance and informs Article IV consultations. Financial stability assessments under the FSAP are mandatory for jurisdictions with financial sectors the IMF deems systemically important and are expected every five or ten years.
In FY 2026, the IMF conducted 138 Article IV consultations and 11 financial system stability assessments under the FSAP.
Multilateral Surveillance
As part of its multilateral surveillance, the IMF issues biannual reports and updates on the latest global economic developments: the World Economic Outlook, the Global Financial Stability Report, and the Fiscal Monitor. The first chapter of each report analyzes changes in global conditions since the previous edition. Thematic chapters may follow, providing in-depth analyses of selected topics of high public interest. Interim updates on global economic conditions are issued when warranted. In addition, as part of an ongoing effort to provide a rigorous and candid assessment of global excess imbalances and their causes, the IMF publishes the External Sector Report annually.
The IMF also groups its member countries into five regions and publishes outlook reports for each, which cover regional policy developments and challenges and provide country-specific analysis.
Bilateral reports may discuss multilateral issues where relevant. The two types of surveillance inform each other, ensuring a comprehensive and consistent analysis of how each country’s policies affect others; that is, their “spillovers.” In today’s challenging global economic environment, timely and tailored surveillance remains vital. It enables lessons to be shared and provides members with well-calibrated policy advice.
Policy Advice
The IMF Executive Board discusses all aspects of the IMF’s work, from Article IV consultations to policy issues relevant to the global economy. The Board bases its work on policy papers prepared by the IMF staff. In FY 2026, the IMF published 45 of these policy papers externally.
Policy Papers
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The Short-term Liquidity Line (SLL), introduced in 2020, was designed as a revolving liquidity backstop for countries with very strong economic fundamentals and institutional policy frameworks. It aims to address short-term, moderate balance of payments needs arising from capital flow volatility, helping to prevent emerging liquidity pressures from escalating into broader macroeconomic or financial instability. However, uptake has been limited, with only one arrangement for Chile in 2022, which was canceled shortly thereafter in favor of a Flexible Credit Line (FCL).
View Press ReleaseThe Executive Board discussed the Independent Evaluation Office’s review of IMF fiscal policy advice from 2008 to 2023. Directors welcomed the evaluation and noted the Fund’s progress in adapting its guidance to changing global conditions. The discussion highlighted the evolution from a narrow focus on debt sustainability toward a more integrated approach that balances fiscal sustainability, output stabilization, and long-term growth. Directors acknowledged improvements in analytical tools, including debt sustainability frameworks and fiscal risk assessments, while emphasizing the need for clearer articulation of fiscal stance and better integration of long-term spending priorities. The Board reaffirmed its commitment to transparency and consistency in providing candid, country-specific advice to help members navigate fiscal challenges.
The Managing Director welcomes the Independent Evaluation Office’s assessment of IMF fiscal policy advice over the past 15 years. The evaluation highlights the Fund’s evolution from a narrow focus on debt sustainability to a more balanced framework that integrates output stabilization, fiscal sustainability, and long-term growth objectives.
Despite the challenging external environment, the GCC economies have been resilient. Non-hydrocarbon activity has remained robust amid strong domestic demand supported by the reform momentum, limited spillovers from regional, as well as the modest direct impact of higher U.S. tariffs given the exemption of energy products and limited trade ties with the U.S. While external balances narrowed amid oil production cuts and robust imports, the external positions remain overall strong. The economic outlook remains favorable but risks are tilted to the downside amidst elevated global uncertainty. Economic activity will be supported by the unwinding of oil production cuts, the expansion of natural gas production, and strong reform and project implementation facilitated by ample policy buffers. External buffers would remain comfortable despite narrower current account balances driven by higher imports. The near-term risks to the outlook are tilted to the downside, as oil prices could decline and financial conditions tighten amid high uncertainty. Over the medium term, ongoing global structural shifts pose two-sided risks for the GCC economies.
The 15th Periodic Monitoring Report (PMR) on the Status of Management Implementation Plans (MIPs) in Response to Board-endorsed Independent Evaluation Office (IEO) Recommendations assesses the progress made over the past year on 48 actions contain in 11 MIPs. Over the past year, substantial progress has been made in implementing management actions with the closure of 24 actions, and these closed actions are a balance of strategic and operational actions.
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