Country Reports
2025
July 8, 2025
Islamic Republic of Mauritania: Fourth Reviews Under the Arrangements Under the Extended Credit Facility, and the Extended Fund Facility, Third Review Under the Resilience and Sustainability Facility, and Request for Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania
Description: Economic growth slowed to 5.2 percent in 2024 (compared to 6.5 percent in 2023), reflecting a sluggish extractive sector and inflation remains contained. Growth is projected to slow further to 4.0 percent in 2025 due to the projected contraction in the extractive sector. After widening in 2024, the current account is projected to narrow in 2025. Risks are balanced: upside risks include new mining and gas projects and a further increase in exported commodity prices. Downside risks include an escalation of geopolitical tensions in the region, disruptions in extractives, weather shocks and cuts in official development assistance. Moreover, challenges related to infrastructure, governance, vulnerability to economic shocks, and limited economic diversification constrain Mauritania’s economic development.
July 8, 2025
Republic of Tajikistan: 2025 Article IV Consultation and Second Review under the Policy Coordination Instrument and Request for Modification of a Reform Target-Press Release; Staff Report; and Statement by the Executive Director for Republic of Tajikistan
Description: Strong broad-based growth has continued into 2025, alongside an improved public debt trajectory, as financial inflows have helped boost domestic demand and contributed to a favorable external position. The medium-term outlook remains positive, but subject to geopolitical risks that could result in a less favorable external environment. Tajikistan’s favorable economic performance creates an opportunity to deepen reforms to address structural vulnerabilities and support domestic job creation.
July 7, 2025
Guinea-Bissau: 2025 Article IV Consultation, Eighth Review Under the Extended Credit 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 Guinea-Bissau
Description: Since the last Article IV of June 2022, economic growth has been resilient and the authorities have made significant progress in infrastructure development. The economic outlook for 2025 is positive supported by high international prices of cashew nuts and strong public and private investments. However, risks are on the downside and the country remains at high risk of debt distress. The presidential and legislative elections are scheduled for November 23, 2025, and the social situation remains relatively calm. Direct effects to Guinea Bissau from the elevated global trade uncertainty are relatively low, as prices of cashew nuts, which account for over 90 percent of exports, have so far not been adversely affected by recent global events and the country is benefiting from lower global fuel prices.
July 4, 2025
Denmark: 2025 Article IV Consultation-Press Release; and Staff Report
Description: Strong growth has continued, primarily driven by the expansion of pharmaceutical exports, while domestic demand has been relatively sluggish. Inflation has remained below 2 percent. Public finances and external positions are robust, and the financial system has demonstrated resilience to multiple shocks in recent years. Staff expects growth to moderate in the near term as external demand weakens, and the exceptional pharmaceutical expansion begins to normalize. While direct impacts from U.S. tariffs are expected to be limited, the escalated global trade tensions pose risks to the outlook. In response to increasing geopolitical tensions, early in 2025, the government announced a substantial increase in defense spending.
July 3, 2025
Austria: 2025 Article IV Consultation-Press Release; and Staff Report
Description: The Austrian economy faces a challenging environment following two successive years of recession. Adverse shocks from high energy prices and the rapid rise in interest rates to curtail subsequent inflation have dragged down domestic and external demand, as have heightened uncertainty and weak sentiment. The downturn in activity has been especially significant in manufacturing, construction, and some services. Despite weak demand, core inflation has been persistent due in part to rapid wage growth. And while strong policy responses helped to cushion the impact of recent shocks, the fiscal deficit and public debt have risen significantly from pre-pandemic levels. Over the medium term, weak productivity and demographic aging pose significant growth and fiscal headwinds. At the same time, Austria retains strong institutions that equip it to deal with these challenges.
July 3, 2025
Paraguay: Fifth Review Under the Policy Coordination Instrument, Request for Modification of a Quantitative Target and Resetting of Reform Targets, Third Review Under the Arrangement Under the Resilience and Sustainability Facility, Rephasing of Reform Measures, and Requests for Extension of the Policy Coordination Instrument and the Resilience and Sustainability Facility Arrangement-Press Release; and Staff Report
Description: Paraguay's economic activity remains robust, bolstered by ongoing reforms and sound macroeconomic fundamentals. Inflation is within the central bank’s tolerance range, and both public debt and the external position are sustainable. While the outlook is favorable, it remains subject to elevated global risks and vulnerable to adverse weather shocks. The authorities have reaffirmed their strong commitment to the fiscal consolidation plan—an essential anchor of macroeconomic stability. Paraguay’s sovereign debt trades with one of the lowest risk spreads in the region.
July 3, 2025
Sri Lanka: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Waiver of Applicability of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
Description: The economic outlook remains positive, and the government has reaffirmed its commitment to the program. Reforms continue to deliver on their objectives including in enhancing social protection and advancing governance reforms. Nevertheless, global trade policy uncertainty has increased downside risks to Sri Lanka’s macroeconomic and social stability.