Country Reports
2024
February 1, 2024
Argentina: Seventh Review under the Extended Arrangement under the Extended Fund Facility, Requests for Rephasing of Access, Extension of the Arrangement, Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina
Description: Since completion of the last reviews, Argentina’s imbalances and distortions have become dangerously acute, while the program has gone significantly off-track, reflecting highly expansionary and inconsistent policies of the previous administration. The fiscal deficit rose further, international reserves were depleted and reliance on interventionist measures intensified, leading to triple digit inflation, a further deterioration of the central bank’s balance sheet and a sharp rise in importers’ commercial debt. The new administration has begun to take bold actions to restore macroeconomic stability and address many of the long-standing impediments to growth and investment. These initial actions are starting to bear fruit, although the path to stability will be challenging. Efforts are underway to build the social and political support for the stabilization plan, with a divided Congress and a fragile social situation presenting important implementation challenges.
January 31, 2024
Cambodia: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Cambodia has experienced rapid growth over the past decade, outpacing many regional peers. Growth was driven by industrialization, increased foreign direct investment, and a surge in exports, particularly in labor-intensive manufacturing. The economy underwent significant structural shifts and has made strides in poverty reduction. However, the COVID-19 pandemic caused significant setbacks and may have left longer-term scarring. The challenges ahead are to sustain inclusive growth, diversify exports, and navigate potential headwinds from China's slowing growth.
January 30, 2024
Thailand: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Thailand
Description: Thailand’s economic recovery from the COVID-19 pandemic and multiple shocks in 2022 is continuing, amid elevated uncertainty. Growth is projected at 2.5 percent in 2023, broadly on par with 2022, while inflation is expected to remain well-within the authorities’ target range. Policies have gradually normalized to support growth and financial stability while protecting the population from the high inflation, but there is limited space to absorb new shocks. Heightened global uncertainty, with downside risks prevailing, puts an extra premium on prudent macroeconomic management.
January 30, 2024
Czech Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Czech Republic
Description: Growth slowed considerably following Russia’s invasion of Ukraine, reflecting disruptions in global value chains, significant increases in energy and commodity prices, an erosion in real wages, and a necessary tightening in monetary policy. Growth is expected to pick up in 2024, led by consumption and fixed investment—as inflation fades and real income recovers—supported by net exports. Nevertheless, over the medium term, GDP is not expected to reach the levels consistent with its pre-pandemic trend. Inflation peaked in 2022 and is projected to meet its target by early 2025. Risks are tilted to the downside for activity and to the upside for inflation.
January 29, 2024
Malta: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malta
Description: Malta has experienced an impressive recovery from the pandemic and demonstrated resilience to shocks resulting from Russia’s invasion of Ukraine. With weaker growth in Europe and waning post-pandemic pent-up demand, staff expect growth to decelerate somewhat but continue to expand by 6¼ percent in 2023 and 5 percent in 2024, among the highest in Europe. Persistent inflationary pressures are expected, while concern has risen about growing capacity constraints. The financial system has demonstrated resilience to successive shocks.
January 29, 2024
Oman: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Oman
Description: Economic activity has recovered, supported by favorable oil prices and sustained reform momentum. Inflation remains low. After years in deficit, fiscal and current account balances have turned into surpluses on the back of high energy prices and prudent fiscal management. Public sector debt has been reduced markedly as windfall savings were deployed to prepay debt. The authorities have made substantial progress in implementing Oman Vision 2040, but more remains to be done to reduce Oman’s reliance on hydrocarbons and bolster prospects for non-hydrocarbon growth.
January 29, 2024
Oman: Selected Issues
Description: This Selected Issues paper revisits the exposure of Oman’s fiscal position to an array of potential risks, zooming in on the impact of oil price volatility and potential risks stemming from state-owned enterprises. It documents actions taken by Omani policymakers to mitigate the impact of fiscal risks and provides further recommendations on fiscal risk disclosure and management. Better understanding of fiscal risks, combined with their transparent reporting and effective risk management underpin fiscal credibility and the sustainability of public finances. The annual budget can disclose guarantees, related beneficiaries, the expected duration, and the intended purpose. It is essential to identify and disclose the main fiscal risks from climate-related events and Oman’s climate agenda, both in qualitative and quantitative terms. Effective fiscal policymaking and fiscal risk management require appropriate coordination of decision making between central government and other parts of the public sector.