Country Reports
2024
February 7, 2024
Republic of Azerbaijan: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Growth is moderating following a strong post-pandemic rebound, and inflation is easing. The near-term challenge is to resume fiscal consolidation following a temporary easing, and to ensure that inflation—which has recently returned to the target band—does not reignite amid external risks and domestic pressures. In the medium to long term, Azerbaijan’s biggest challenge is to reduce dependence on the hydrocarbon sector and advance private sector-led economic diversification.
February 7, 2024
Qatar: 2023 Article IV Consultation-Press Release; and Staff Report
Description: After very strong economic performance in 2022, boosted by the successful hosting of the 2022 FIFA World Cup, output growth has been normalizing. High hydrocarbon prices further strengthened fiscal and external positions. Banks are strong, although non-performing loans continued to edge up. Reforms have gained momentum and are expected to intensify under the upcoming Third National Development Strategy.
February 7, 2024
Republic of Equatorial Guinea: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Equatorial Guinea
Description: Equatorial Guinea’s macroeconomic situation has deteriorated over the last decade due to a secular decline in oil production. In 2022, economic indicators improved somewhat. However, this recovery was short-lived, with the economy projected to fall back into recession in 2023. In the years ahead, the economy would contract further. Without strong policy responses, all the gains in per capita income achieved over the last two decades are expected to fully unravel by 2028. The three-year Extended Fund Facility (EFF) approved in 2019 to support the authorities’ diversification agenda expired at end-2022 without a single completed review. The authorities have nonetheless continued to implement reforms delayed under the program as well as the 2022 Article IV Consultation recommendations.
February 6, 2024
Chile: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Chile
Description: Macroeconomic imbalances built during the pandemic have been largely resolved, supported by strong policy responses. Inequality has declined somewhat but remains high. Weak investment and potential growth are constraining income convergence to advanced economies. Policy priorities have shifted toward making the economy more dynamic, inclusive, and greener, but the government is struggling to pass reforms in a fragmented parliament. The December referendum which rejected the draft constitution has reduced lingering uncertainty by bringing the process to a close for the coming years.
February 2, 2024
The Bahamas: 2023 Article IV Consultation-Press Release; and Staff Report
Description: The Bahamas economy is in the midst of a solid expansion. A strong recovery of tourism has helped regain the ground that was lost after hurricane Dorian and the Covid crisis. Unemployment is at its lowest level since 2008 while inflation has been on a downward path and is lower than in most regional peers. Public finances are improving, although debt remains high. The more favorable economic environment provides space for the authorities to reorient their policy framework toward the pursuit of greater fiscal sustainability, social equity, and climate resilience.
February 2, 2024
People's Republic of China: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the People's Republic of China
Description: China has enjoyed decades of impressive growth, which has significantly improved living standards and largely eradicated extreme poverty. The growth has, however, been accompanied by widening imbalances and rising vulnerabilities, as excessive investment in infrastructure and housing has resulted in rising debt levels among property developers, local governments (LG), and local government financing vehicles (LGFVs). The authorities have proactively sought to contain developer leverage. This has contributed to a significant, but needed, adjustment in the property market that continues to weigh on economic activity, including through its impact on LG finances. Amid these structural challenges, the authorities have appropriately announced their goal to transition to high quality growth while tackling risks from the property sector and LG debt.
February 1, 2024
Argentina: Seventh Review under the Extended Arrangement under the Extended Fund Facility, Requests for Rephasing of Access, Extension of the Arrangement, Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina
Description: Since completion of the last reviews, Argentina’s imbalances and distortions have become dangerously acute, while the program has gone significantly off-track, reflecting highly expansionary and inconsistent policies of the previous administration. The fiscal deficit rose further, international reserves were depleted and reliance on interventionist measures intensified, leading to triple digit inflation, a further deterioration of the central bank’s balance sheet and a sharp rise in importers’ commercial debt. The new administration has begun to take bold actions to restore macroeconomic stability and address many of the long-standing impediments to growth and investment. These initial actions are starting to bear fruit, although the path to stability will be challenging. Efforts are underway to build the social and political support for the stabilization plan, with a divided Congress and a fragile social situation presenting important implementation challenges.