What's New Archive
Page: 3 of 2015
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May 23, 2023
Guatemala's solid track record of prudent macroeconomic policies and large remittance inflows provided the country with large buffers to weather a challenging global environment and tightened global financial conditions. In 2022, Guatemala's real GDP growth was 4.1 percent (3.4 percent projected in 2023), with the fiscal deficit below 2 percent of GDP—driven by tax collection overperformance and high import prices—and the stock of public debt below 30 percent of GDP. Domestic private demand continued to be strong, and bank credit to the private sector grew at double-digit rates.
May 23, 2023
Luxembourg has shown resilience in the aftermath of the war in Ukraine and accelerated tightening of global financial conditions, partly helped by fiscal support. That said, despite robust labor market, GDP growth slowed. Soaring energy prices sent inflation to a multi-decade high, prompting the Government to support households and firms by introducing price controls and tax cuts. Although costly, the measures have helped temporarily keeping inflation below the levels in most euro area peers and limiting the number of wage indexations. Tighter financial conditions have started to impact the financial sector, with heterogeneity across segments. The financial sector, overall, remains resilient, though there are some pockets of vulnerabilities, especially in the real estate sector and non-bank financial institutions.
May 23, 2023
The IMF joined the United Nations Global Counter-Terrorism Coordination Compact at a High-Level event on “Enhancing global cooperation on countering the financing of terrorism.”
May 23, 2023
Country Report No. 2023/179
May 23, 2023
Country Report No. 2023/178
May 23, 2023
Country Report No. 2023/174
May 23, 2023
A staff team from the International Monetary Fund (IMF), led by Haimanot Teferra, visited Nairobi during May 9 – 22, 2023, for the fifth reviews of Kenya’s economic program supported by the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF). The arrangements were approved by the IMF Executive Board on April 2, 2021 (see Press Release No. 21/98). Including augmentation at the time of the fourth reviews, these arrangements provide access to a total amount of SDR1.818 billion (about US$2.43 billion at current exchange rate). The mission also considered Kenya’s request for access under the IMF’s Resilience and Sustainability Facility (RSF) and further augmentation under the EFF/ECF.
May 23, 2023
Russia’s invasion of Ukraine triggered a large rise in inflation, supply chain disruptions, and slower growth in key trading partners. These developments, combined with budget under-execution in 2022, led to stagflationary conditions. Lower energy and commodity prices, along with gradually stronger external demand, are expected to support the recovery. A very large fiscal impulse in 2023 is expected to boost growth in the near term but will also leave inflation well above the euro area average. In turn, high inflation is likely to exert pressure on wages which, combined with declining productivity growth, may further erode Estonia’s competitiveness over time.
May 23, 2023
The euro adoption marks a momentous achievement for Croatia and is a testament to diligent policymaking and concerted efforts. The economy has also been resilient in the face of the pandemic and Russia’s war against Ukraine, in part reflecting the authorities’ skillful macroeconomic and financial management. The authorities’ steadfast implementation of the National Recovery and Resilience Plan (NRRP) is commendable. That said, Croatia still faces the challenge to further raise the living standards of its people in a sustainable manner. Growth is projected to moderate in 2023, following two years of strong performance. While inflation has peaked, it remains elevated and broad-based. Policies should focus on (i) continuing prudent fiscal, financial, and macroprudential policy stances to complement the ECB’s monetary tightening and build adequate buffers, and (ii) advancing structural reforms and maintaining reform momentum to improve competitiveness and foster faster income convergence with richer eurozone countries, anchored by the NRRP
May 23, 2023
An International Monetary Fund (IMF) mission, led by Alina Iancu, held discussions during May 10–23 for the 2023 Article IV consultation with Bosnia and Herzegovina.
May 23, 2023
An International Monetary Fund (IMF) mission led by Roland Kpodar visited Brazzaville from May 8 to May 19 to hold discussions under the third review of the authorities’ program supported by the IMF Extended Credit Facility (ECF) approved in January, 2022 (see PR 22/11).
May 23, 2023
“During the visit, we discussed recent macroeconomic and financial sector developments. Following strong policy efforts, the macroeconomic situation in Sri Lanka is showing tentative signs of improvement, with inflation moderating, the exchange rate stabilizing, and the Central Bank rebuilding reserves buffers. However, the overall macroeconomic and policy environment remains challenging.
May 23, 2023
Buoyed by resilient demand in the context of declining energy prices, the UK economy is expected to avoid a recession and maintain positive growth in 2023. Still, economic activity has slowed significantly from last year and inflation remains stubbornly high following the severe terms-of-trade shock due to Russia’s war in Ukraine and, to some extent, labor supply scarring from the pandemic. Monetary policy will need to remain tight in order to keep inflation expectations well-anchored and bring inflation to target. Fiscal policy should continue to be aligned with monetary policy in the fight against inflation, while protecting key public services and the vulnerable. The UK financial system has weathered the recent global banking stress well. Continued strong oversight, including of smaller banks and the diverse non-bank financial sector, will be critical to preserve UK financial stability, which the IMF sees as a global public good. Realizing the UK’s full growth potential will require wide-ranging, further evidence-based reforms, including addressing the post-pandemic rise in labor inactivity, mainly due to long-term illness; removing impediments to business investment, especially policy and regulatory uncertainty; and enhancing public investment and transformational spending to boost productivity and accelerate the green transition.
May 22, 2023
Industrial policy refers to a set of policies that governments use to bolster national industries or companies deemed strategically important for economic competitiveness, social outcomes, or national security. In this podcast, Agarwal says while the practice of choosing national champions fell out of favor in the 1980s, rising geopolitical tensions of late have sparked a renewed interest in industrial policy, which is often a guise for protectionism.
May 22, 2023
Country Report No. 2023/171
May 22, 2023
Marked exchange rate depreciation following the global terms of trade shocks at the start of 2022 year brought high inflation and deteriorating living standards. Public debt has increased further, largely driven by currency depreciation, but also by additional government arrears, domestic bond issuances to recapitalize banks, and SOE debts.
May 19, 2023
Working Paper No. 2023/107
May 19, 2023
Working Paper No. 2023/105
May 19, 2023
Country Report No. 2023/170
May 19, 2023
Somalia’s ECF arrangement was originally approved by the Executive Board on March 25, 2020 (see Press Release No. 20/105) as part of a three-year blended arrangement under the ECF and the EFF, which involved access of SDR 252.86 million (155 percent of quota) under the ECF and SDR 39.57 million (24 percent of quota) under the EFF. As the full amount of the EFF arrangement was made available on approval and drawn at the first purchase, the EFF arrangement lapsed immediately. The ECF arrangement supports the implementation of the authorities’ National Development Plan and anchors reforms between the Heavily Indebted Poor Countries (HIPC) Decision and Completion Points.
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