Gender

An IMF team found that, compared to the 2017 PIMA results, Burkina Faso has made progress in improving its public investment management system, but this is still insufficient to strengthen PIM efficiency. The assessment conducted during this mission shows an encouraging improvement in PIM practices in Burkina Faso, in terms of both the legal framework and implementation effectiveness. However, there is still a gap between the evolved institutional design and its actual implementation, which is often less satisfactory. Regarding climate aspects, some good practices are beginning to emerge, particularly in planning and risk management. The team has identified nine high-priority recommendations to improve PIM processes and support the Government of Burkina Faso in effectively implementing its investment policy and development agenda, including increasing resilience against climate change.

[Please note this report is only available in French] An IMF team found that, compared to the 2017 PIMA results, Burkina Faso has made progress in improving its public investment management system, but this is still insufficient to strengthen PIM efficiency. The assessment conducted during this mission shows an encouraging improvement in PIM practices in Burkina Faso, in terms of both the legal framework and implementation effectiveness. However, there is still a gap between the evolved institutional design and its actual implementation, which is often less satisfactory. Regarding climate aspects, some good practices are beginning to emerge, particularly in planning and risk management. The team has identified nine high-priority recommendations to improve PIM processes and support the Government of Burkina Faso in effectively implementing its investment policy and development agenda, including increasing resilience against climate change.

Canada is adjusting to the largest shift in North American trade policy since NAFTA. The economy has been more resilient than initially feared, supported by USMCA exemptions, resilient consumption, and policy cushioning. Nonetheless, elevated trade uncertainty has weighed on exports, investment, and confidence, reinforcing long-standing weaknesses in productivity and competitiveness.

Economic growth remains strong despite adverse shocks. Inflation is well within its target band, and the financial sector broadly resilient. Downside risks stem from trade policy shocks, prolonged uncertainty, and global financial market volatility. Ensuring durable and high-quality growth will require a carefully calibrated policy mix, relying on strong guardrails and buffers to prevent the buildup of vulnerabilities, and deploying bold and sound structural reforms.

Selected Issues

Grenada’s economy continues to navigate elevated global uncertainties well in the aftermath of damages caused by the 2024 Hurricane Beryl. The resilience of the tourism sector, ongoing reconstruction and, increasingly, other development priority investments helped sustain robust GDP growth. Despite significant public expenditure outlays and the extended primary balance rule suspension, the Government’s fiscal position remains comfortable on the back of substantial savings from the now-normalized Citizenship-by-Investment (CBI) revenues and post-disaster contingent financing receipts. Inflation remains moderate while large FDI inflows continue to finance high current account deficits. The financial system remains stable with only a modest post-disaster impact.

Hurricane Melissa struck Jamaica shortly after the country successfully completed its Precautionary and Liquidity Line and the Arrangement under the Resilience and Sustainability Facility with the Fund. Jamaica’s strong track record of economic reforms has created critical buffers that are proving invaluable in addressing the economic fallout and reconstruction needs. Nevertheless, the widespread devastation caused by the hurricane, rising fiscal pressures, and a sharp decline in tourism receipts have generated a sizable balance-of-payments need in the short term. The authorities are, therefore, requesting emergency financial support under the Rapid Financing Instrument’s large natural disaster window of 80 percent of quota (SDR 306.32 million or about US$415 million).

Global Economy: Steady amid Divergent Forces

Global growth is projected at 3.3 percent for 2026 and 3.2 percent for 2027, revised slightly up since the October 2025 World Economic Outlook. Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offset trade policy shifts. Global inflation is expected to fall, but US inflation will return to target more gradually. Key downside risks are reevaluation of technology expectations and escalation of geopolitical tensions. Policymakers should restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms.