Country Reports
2021
June 2, 2021
Botswana: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana
Description: Botswana entered the COVID-19 crisis with larger buffers than most countries, but significantly less than in the past. The country was contending with structural challenges, persistent negative external shocks and delays in adjustment that had already caused a significant weakening of international reserves coverage and the fiscal position amid high unemployment. The pandemic exacerbated these challenges causing a sharp GDP contraction, among the strongest in SSA and a widening in the current account deficit. Foreign exchange reserves dropped further, though still remaining well above adequate levels. The fiscal deficit widened significantly as the government sought to counter the economic impact of the COVID-19 crisis, and implemented a sizeable public wage increase agreed in 2019. The deficit was financed partially by drawing down on the Government Investment Account.
June 2, 2021
Cabo Verde: Technical Assistance Report-Monetary and Financial Statistics Mission
Description: At the request of the IMF’s African Department (AFR) and the Bank of Cabo Verde (BCV), a monetary and financial statistics (MFS) remote technical assistance (TA) mission from the IMF’s Statistics Department (STA) took place during January 18-29, 2021. The main objective of the mission was to assist the BCV in (i) reconciling the monetary accounts disseminated by the BCV with the monetary statistics submitted to STA for dissemination through International Financial Statistics and for internal use, in particular within AFR; (ii) improving the collection of data on sectoral distribution of credit by economic activity; and (iii) implementation of the IMF’s 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG).The work of the mission was facilitated by the excellent collaboration of the BCV’s staff, in particular the Statistics and Economic Studies Department (DEE). The officials met during the mission are listed in Appendix I.
June 2, 2021
Federated States of Micronesia: Technical Assistance Report-Financial Soundness Indicators Mission
Description: The International Monetary Fund’s (IMF’s) Statistics Department (STA) provided technical assistance (TA) on financial soundness indicators (FSI) to the Federated States of Micronesia Banking Board (FSMBB) during November 2-13, 2020. The TA mission took place in response to a request from the authorities, with the support of the IMF’s Asia & Pacific Department (APD). The mission was conducted remotely via video conferences due to the COVID-19 pandemic and travel restrictions. The mission worked with the staff of the FSMBB on the development of FSIs that are in line with the IMF’s 2019 FSI Guide.1 The main objectives of the mission were to: (i) review the source data, institutional coverage and accounting and regulatory frameworks supporting the compilation of FSIs; (ii) provide guidance for mapping source data for the banking sector to the FSI reporting templates FS2 and FSD as well as areas for improvement in the metadata; (iii) agree with the FSMBB the timeline to begin regular reporting of the FSIs for deposit-takers to STA, conditional on the availability and completeness of the source data; and (iv) agree on the timeliness of data reporting.
May 27, 2021
Republic of the Marshall Islands: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of the Marshall Islands
Description: Strong and timely containment measures have successfully prevented a domestic COVID-19 outbreak but have also weighed on economic activity. The real GDP is estimated to have contracted by 3.3 percent in FY2020 and is projected to further decline by another 1.5 percent in FY 2021 due to continued travel restrictions. Economic activity is expected to pick up in FY2022, as COVID-related restrictions will be relaxed gradually. The government is currently negotiating the renewal of Compact of Free Association (COFA) financial provisions with the United States, but terms remain uncertain. The government is considering to repeal the SOV Act and a bill on establishing a Digital Economic Zone was submitted to the Parliament recently.
May 25, 2021
Luxembourg: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg
Description: The economic impact of the pandemic has been much milder than initially foreseen, still the outlook remains challenging. The economy, dominated by financial services, adapted quickly to telework and benefited from unprecedented policy support, both domestically and globally. Uncertainty is unusually high, dominated by the virus dynamics in the short term, with downside risks relating to a sharp rise in global risk premia, deglobalization trends, and changes in international taxation.
May 25, 2021
Republic of Slovenia: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Slovenia
Description: The pandemic is inflicting much suffering, which has been met with swift, substantial, and well-coordinated policy responses. The anti-crisis measures have helped preserve jobs, provide liquidity to companies and income support to the vulnerable groups. They averted a larger decline in output and kept unemployment under control. After contracting by 5.5 percent in 2020, real GDP is projected to grow by 3.9 percent in 2021 and 4.5 percent in 2022, as vaccinations help achieve herd immunity. However, risks to the outlook are large and tilted to the downside, given the epidemiological situation.
May 25, 2021
Democratic Republic of the Congo: Technical Assistance Report-Governance and Anti-Corruption Assessment
Description: At the request of His Excellency the President of the Republic and Head of State, the Legal (LEG) and Fiscal Affairs (FAD) Departments of the IMF conducted an assessment of governance and corruption mission in Kinshasa, Democratic Republic of the Congo (DRC) from December 9 to 20, 2019 (the “mission”).1 The objectives of the mission were to discuss with the authorities (i) a diagnostic of governance issues in the DRC; and (ii) to articulate measures to help improve governance and the fight against corruption.
May 21, 2021
Chile: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Chile
Description: The pandemic hit the Chilean economy while it was recovering from the 2019 social unrest. The authorities’ swift and strong economic policy efforts and Chile’s very strong institutional frameworks helped buffer the economic and social consequences. The ongoing economic recovery continues to be supported by ample policy stimulus, a rapid vaccination process, well-anchored inflation expectations, a resilient export base, and continued market confidence.
May 14, 2021
Republic of Mozambique: Technical Assistance Report-Inflation Targeting and Model-based Monetary Policy Analysis
Description: The purpose of the mission was to improve the understanding of the conduct of monetary policy in an inflation targeting (IT) central bank. During the September visit, the mission provided capacity building through daily morning seminars, giving an introduction to modern theory of monetary policy in small-open economies, and by performing monetary policy analyses based on BM’s quarterly projection model (QPM) in the afternoons.
May 7, 2021
Sierra Leone: Technical Assistance Report-Public Investment Management Assessment
Description: Sierra Leone has made significant strides to rebuild its public infrastructure after the devastating civil war, but the desperate infrastructure needs remain. At the end of the conflict in 2002, the country was left with virtually no infrastructure. Redevelopment of public infrastructure was ignited by the mining boom, which started in the late 2000s. Over the period 2008−18, public investment averaged 6.5 percent of gross domestic product (GDP), which has translated into an estimated capital stock of about 65 percent in constant 2011 GDP. However, a level of public investment is still lower than neighboring countries by about one percentage point. The level of capital stock per capita is one of the lowest in the region, only slightly above that of Liberia. Some districts still have no paved roads, no electricity, and no water systems, almost 20 years after the war.