Despite significant progress in recent decades, labor markets across the world remain divided along gender lines. Female labor force participation has remained lower than male participation, gender wage gaps are high, and women are overrepresented in the informal sector and among the poor. In many countries, legal restrictions persist which constrain women from developing their full economic potential. While equality between men and women is in itself an important development goal, women's economic participation is also a part of the growth and stability equation. In rapidly aging economies, higher female labor force participation can boost growth by mitigating the impact of a shrinking workforce. Better opportunities for women can also contribute to broader economic development in developing economies, for instance through higher levels of school enrollment for girls.
Impact on economic activity will vary across countries, but inflation will rise for all
The region must respond to energy shocks through disciplined policies that protect the vulnerable and strengthen resilience
The region can best cope by protecting vulnerable people, letting prices adjust, anchoring inflation expectations, and accelerating structural reforms
Middle East conflict intensifies global uncertainty at a time of strained public finances, underscoring the need for policies that preserve future stability
Markets have been broadly orderly so far—but financial stability risks are elevated
The Middle East conflict halted growth momentum. The right policies and stronger global cooperation are needed to contain the damage.
The social situation is relatively calm following the military takeover of the government in November 2025. The transitional government renewed its commitments to the ECF-supported program and has been accelerating the implementation of policies and reforms for maintaining economic stability and debt sustainability. A strong increase in cashew production and higher international prices for cashews supported economic growth and improved the balance of payments in 2025. Inflation fell to below 1 percent for the year, reflecting lower food prices. The economic outlook continues to be positive for 2026, although downside risks could arise from negative terms of trade shocks, adverse weather conditions, and additional tightening of regional financing conditions.
Since the 2025 Annual Meetings, the Independent Evaluation Office (IEO) completed its evaluation on IMF Advice on Fiscal Policy and announced plans to launch evaluations of “IMF Advice on Monetary Policy” and “Political Economy Considerations in IMF Work.” The IEO is also progressing on its ongoing evaluations of “The IMF and Climate Change” and “IMF Engagement on Debt Issues in Low-Income Countries.”
Cameroon’s growth has been consistently below expectations and reflects structural constraints that limit private-sector development, including a shallow financial system, sizeable infrastructure gaps, and weak public investment efficiency. Access to finance and underdeveloped infrastructure are increasingly binding obstacles, keeping firms small and productivity low. Using firm-level evidence, cross-country benchmarks, and a panel regression for 88 economies, this Selected Issues Paper (SIP) documents these constraints and finds that, conditional on the model and historical cross-country relationships, closing Cameroon’s gaps in financial development and infrastructure relative to the sample average is associated with substantially higher long-term income per capita—on the order of 28 percent. It also finds that even at current levels, improvements in efficiency could generate additional gains. The SIP outlines priority reforms to deepen financial intermediation, strengthen investment planning and execution, and accelerate infrastructure delivery to support Cameroon’s convergence toward peer economies under the National Development Strategy 2030.
Cameroon is highly vulnerable to natural disasters and strengthening resilience is macro-critical. The government faces significant challenges, including weak infrastructure, insufficient protection against floods, and lack of financial resources. Simulations using the DIGNAD model illustrate the positive impact of investing in climate-resilient infrastructure and strengthening public investment efficiency on economic growth and debt, compared to ex-post disaster management and financial contingency funds. Given Cameroon’s large needs and debt vulnerabilities, international financial support is key to strengthen resilience.
This report provides an overview of the technical assistance delivered by the International Monetary Fund (IMF) to the Reserve Bank of Vanuatu (RBV). The assistance supported the authorities in reviewing the currency basket framework and enhancing the functioning of the foreign exchange (FX) market. Its main objectives were to review and update the basket weights, with a view to achieving price stability, and to assess the FX operation at the RBV.
The IMF supported the development of a draft Tax Administration Development Program (TADP) 2026-2030 for the Republic of Tajikistan which outlines a comprehensive strategy to modernize and digitalize the national tax administration system. Building on prior reforms and international best practices, the Program aims to enhance voluntary compliance, reduce the shadow economy, and improve taxpayer services through advanced risk management and digital transformation. Key findings highlight significant progress in digital services and institutional reforms and identify the need to strengthen compliance risk management and interagency cooperation. The Program recommends a sequenced and comprehensive approach focusing on four strategic priorities: enhancing compliance, digital transformation, harmonization with international standards, and organizational excellence.
War in the Middle East: Economic Spillovers and Policy Challenges
The April 2026 IMF Regional Economic Outlook Update examines how the war in the Middle East is reshaping growth, inflation, and financial conditions across the region and discusses key priorities for regional policymakers.
Impact on economic activity will vary across countries, but inflation will rise for all
The region must respond to energy shocks through disciplined policies that protect the vulnerable and strengthen resilience
The region can best cope by protecting vulnerable people, letting prices adjust, anchoring inflation expectations, and accelerating structural reforms
Middle East conflict intensifies global uncertainty at a time of strained public finances, underscoring the need for policies that preserve future stability
Markets have been broadly orderly so far—but financial stability risks are elevated
The Middle East conflict halted growth momentum. The right policies and stronger global cooperation are needed to contain the damage.
The social situation is relatively calm following the military takeover of the government in November 2025. The transitional government renewed its commitments to the ECF-supported program and has been accelerating the implementation of policies and reforms for maintaining economic stability and debt sustainability. A strong increase in cashew production and higher international prices for cashews supported economic growth and improved the balance of payments in 2025. Inflation fell to below 1 percent for the year, reflecting lower food prices. The economic outlook continues to be positive for 2026, although downside risks could arise from negative terms of trade shocks, adverse weather conditions, and additional tightening of regional financing conditions.
Since the 2025 Annual Meetings, the Independent Evaluation Office (IEO) completed its evaluation on IMF Advice on Fiscal Policy and announced plans to launch evaluations of “IMF Advice on Monetary Policy” and “Political Economy Considerations in IMF Work.” The IEO is also progressing on its ongoing evaluations of “The IMF and Climate Change” and “IMF Engagement on Debt Issues in Low-Income Countries.”
Cameroon’s growth has been consistently below expectations and reflects structural constraints that limit private-sector development, including a shallow financial system, sizeable infrastructure gaps, and weak public investment efficiency. Access to finance and underdeveloped infrastructure are increasingly binding obstacles, keeping firms small and productivity low. Using firm-level evidence, cross-country benchmarks, and a panel regression for 88 economies, this Selected Issues Paper (SIP) documents these constraints and finds that, conditional on the model and historical cross-country relationships, closing Cameroon’s gaps in financial development and infrastructure relative to the sample average is associated with substantially higher long-term income per capita—on the order of 28 percent. It also finds that even at current levels, improvements in efficiency could generate additional gains. The SIP outlines priority reforms to deepen financial intermediation, strengthen investment planning and execution, and accelerate infrastructure delivery to support Cameroon’s convergence toward peer economies under the National Development Strategy 2030.
Cameroon is highly vulnerable to natural disasters and strengthening resilience is macro-critical. The government faces significant challenges, including weak infrastructure, insufficient protection against floods, and lack of financial resources. Simulations using the DIGNAD model illustrate the positive impact of investing in climate-resilient infrastructure and strengthening public investment efficiency on economic growth and debt, compared to ex-post disaster management and financial contingency funds. Given Cameroon’s large needs and debt vulnerabilities, international financial support is key to strengthen resilience.
This report provides an overview of the technical assistance delivered by the International Monetary Fund (IMF) to the Reserve Bank of Vanuatu (RBV). The assistance supported the authorities in reviewing the currency basket framework and enhancing the functioning of the foreign exchange (FX) market. Its main objectives were to review and update the basket weights, with a view to achieving price stability, and to assess the FX operation at the RBV.
The IMF supported the development of a draft Tax Administration Development Program (TADP) 2026-2030 for the Republic of Tajikistan which outlines a comprehensive strategy to modernize and digitalize the national tax administration system. Building on prior reforms and international best practices, the Program aims to enhance voluntary compliance, reduce the shadow economy, and improve taxpayer services through advanced risk management and digital transformation. Key findings highlight significant progress in digital services and institutional reforms and identify the need to strengthen compliance risk management and interagency cooperation. The Program recommends a sequenced and comprehensive approach focusing on four strategic priorities: enhancing compliance, digital transformation, harmonization with international standards, and organizational excellence.
War in the Middle East: Economic Spillovers and Policy Challenges
The April 2026 IMF Regional Economic Outlook Update examines how the war in the Middle East is reshaping growth, inflation, and financial conditions across the region and discusses key priorities for regional policymakers.
