What's New Archive
Republic of Croatia: Staff Concluding Statement for the 2023 Article IV Consultation Mission
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
IMF Staff Completes 2023 Article IV Mission to Bosnia and Herzegovina
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.
IMF Staff Concludes Mission to the Republic of Congo for the Third Review of the Extended Credit Facility Arrangement
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).
IMF Staff Concludes Visit to Sri Lanka
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.
United Kingdom: Staff Concluding Statement of the 2023 Article IV Mission
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.
Ruchir Agarwal on Industrial Policy
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.
Lao People's Democratic Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao PDR
May 22, 2023
Country Report No. 2023/171
IMF Executive Board Concludes 2023 Article IV Consultation with Lao People’s Democratic Republic
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.
Spillovers to Emerging Markets from US Economic News and Monetary Policy
May 19, 2023
Working Paper No. 2023/107
Too Low for Too Long: Could Extended Periods of Ultra Easy Monetary Policy Have Harmful Effects?
May 19, 2023
Working Paper No. 2023/105
Kingdom of the Netherlands-Aruba: Technical Assistance Report-Financial Stability Diagnostic and Scoping Mission
May 19, 2023
Country Report No. 2023/170
IMF Executive Board Concludes Fifth Review of the Extended Credit Facility for Somalia
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.
Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru
May 19, 2023
Country Report No. 2023/169
IMF and Madagascar Reach Staff-Level Agreement on the Fourth Review of the Extended Credit Facility Arrangement
May 19, 2023
: A team from the International Monetary Fund (IMF) led by Frederic Lambert held discussions in Antananarivo during May 3 – 12, 2023 on the fourth review of the arrangement with Madagascar supported by the Extended Credit Facility (ECF) approved in March 2021.
IMF Reaches Staff-Level Agreement with Cameroon on the Fourth Reviews of the Extended Credit Facility and the Extended Fund Facility
May 19, 2023
“The mission has reached staff-level agreement with the Cameroonian authorities on the economic and financial policies that could support the approval of the fourth reviews of the program under the ECF and EFF arrangements. Completion of the fourth reviews by the IMF Executive Board, scheduled in late June 2023, would enable the disbursement of SDR 55.2 million (about US$73.8 million).
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A New Growth Engine for Japan: Women in STEM Fields; Japan
May 18, 2023
Selected Issues Paper No. 2023/030
Structural Barriers to Wage Income Growth in Japan: Japan
May 18, 2023
Selected Issues Paper No. 2023/031
The Financial Impact of Carbon Taxation on Corporates: Japan
May 18, 2023
Selected Issues Paper No. 2023/034