Country Reports
2024
December 23, 2024
Republic of Kosovo: 2024 Article IV Consultation and Third Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report
Description: The SBA has served as insurance against adverse shocks while guiding reforms to strengthen fiscal and financial governance and foster growth. The RSF has supported climate reforms to increase generation of renewable energy, boost energy efficiency, enhance regional cooperation, and strengthen crisis preparedness and transition risk monitoring. With strong domestic consumption, growth has accelerated in 2024, while inflation has declined. The fiscal outturn has been positive. However, strong demand for imports and lower remittances have contributed to a deterioration of the external balance. Key risks include higher commodity prices, weaker activity in Europe, and tensions in northern Kosovo. Parliamentary elections will take place in February 2025.
December 23, 2024
Paraguay: Fourth Review Under the Policy Coordination Instrument, Request for Modification of Targets, Second Review Under the Arrangement Under the Resilience and Sustainability Facility, and Request for Rephasing Access-Press Release; and Staff Report
Description: Paraguay's economic activity remained strong in 2024. GDP growth is anticipated to reach 4 percent with some upward potential due to favorable performance of financial intermediation, services, and manufacturing. Inflation is firmly under control and expectations are well anchored. Monetary policy is close to its neutral stance. As projected, the current account has shifted into a wider deficit this year reflecting the post recovery adjustment in trade and higher imports. Fiscal consolidation is continuing with the deficit expected to reach the budgeted 2.6 percent of GDP. In the second part of the year, Paraguay has obtained an investment grade status from Moody’s for the first time in history.
December 23, 2024
Barbados: Fourth Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Alternate Executive Director for Barbados
Description: The authorities’ implementation of the home-grown Economic Recovery and Transformation (BERT 2022) plan and their ambitious climate policy agenda remain strong, supported by the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). Economic growth in 2024 has been robust and inflation has continued to moderate, on the back of easing global commodity prices and lower domestic service prices. The external position continued to strengthen, and international reserves rose further to US$1.6 billion at end-September 2024, supporting the exchange rate peg. The near-term outlook remains positive. While Hurricane Beryl caused significant damage to the fishing sector and some coastal infrastructure, the macroeconomic impact is expected to be relatively moderate, in part reflecting its occurrence during the off-peak tourist season. Nevertheless, the shock once again demonstrated Barbados’ vulnerability to climate change and natural disasters. In this regard, the authorities remain committed to improving the fiscal position and maintaining debt sustainability, while creating fiscal space to increase needed investment, including to boost climate resilience. At the same time, the government is continuing to advance structural reforms to achieve more inclusive, sustainable growth.
December 23, 2024
Costa Rica: Post Financing Assessment-Press Release; and Staff Report
Description: Costa Rica successfully completed its Extended Fund Facility (EFF) and Resilience and Sustainability (RSF) arrangements in June. Growth remains robust, inflation continues to converge to the central bank’s target from below, and international reserves are ample. While one-off revenue shortfalls and expenditures have reduced the primary surplus for 2024, policies remain consistent with the fiscal rule and fiscal consolidation is expected to resume next year. The authorities remain committed to a broad range of reforms, including those aimed at institutionalizing the progress they have achieved under the EFF and RSF programs.
December 23, 2024
Australia: 2024 Article IV Consultation-Press Release; and Staff Report
Description: While progress in addressing pandemic-induced macroeconomic imbalances continues, challenges remain, with inflation proving persistent. Labor and housing markets are exhibiting resilience. Australia remains vulnerable to geoeconomic fragmentation risks and faces a critical transition to net-zero emissions. Fostering competition and a smooth adoption of digital technologies could boost productivity.
December 20, 2024
Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine
Description: This program review is taking place as Ukraine approaches a critical juncture. Conditions of exceptionally high uncertainty remain as Russia’s war in Ukraine continues. Amid continuing attacks on energy infrastructure, comprehensive efforts to prepare for the ongoing winter, including the heating season, are underway. The social, humanitarian, and economic costs remain staggering and have only risen further. Abroad, political transitions or election cycles in key partners for Ukraine may trigger renewed efforts to end the war, as well as changes in the degree or modalities of international support, adding to the uncertainty around the outlook. Despite the risks and challenges, recent developments support completion of the review. First, the authorities have steadfastly implemented reforms despite the war, including enacting a tax package supporting the restoration of fiscal and debt sustainability. Second, the G7 has agreed on the US$50 billion Extraordinary Revenue Acceleration Loans for Ukraine (ERA) Initiative, and is finalizing its modalities, fulfilling an essential component of the program’s financing.
December 20, 2024
Islamic Republic of Mauritania: Staff Report for the 2024 Article IV Consultation, Third Review Under the Arrangements Under the Extended Credit Facility and Extended Fund Facility, Request for Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania
Description: The Mauritanian economy is expected to slow down in 2024 with a growth rate estimated at 4.6 percent (compared to 6.5 percent in 2023), reflecting sluggish extractive sector. Inflation is contained and the current account (CA) deficit is narrowing. The outlook is subject to significant risks, including an escalation of geopolitical tensions in the region, and weather shocks. Moreover, challenges related to infrastructure, governance, vulnerability to economic shocks, and limited economic diversification constrain Mauritania’s economic development.