Country Reports
2024
April 12, 2024
Algeria: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Algeria
Description: The 2023 Article IV Consultation discusses that the Algerian economy is estimated to have grown by 4.2 percent in 2023, a robust performance owing to a rebound in hydrocarbon production and strong performance in the industry, construction, and service sectors. The near-term outlook is broadly positive, but inflation remains a concern. Medium-term economic prospects hinge on efforts to diversify the economy and the ability to attract private investment, and are subject to several risks. The reforms embodied in the Monetary and Banking Law could be an impetus to strengthen the credit market infrastructure, develop long-term savings products, and advance financial inclusion. Sustained and bold reforms would tap the potential of the private sector as driver of sustained growth and job creation. The implementation of the Investment Law and the enactment of a new Land Law aim at fostering private sector initiative and investment and should be complemented with reforming the state-owned enterprises sector and making product and labor market more flexible.
April 12, 2024
Algeria: Selected Issues
Description: This Selected Issues paper examines the macroeconomic and fiscal implications of climate change in Algeria. It highlights a range of risks associated with the projected shifts in weather patterns and Algeria’s own hydrocarbon-reliant growth model in the context of the global energy transition. The projected shift in climate patterns over the coming decades poses risks to prosperity, food security, and social development in the region, with most of its population already living under challenging climate conditions. The paper also discusses fiscal policy options to achieve Algeria’s climate goals. An analysis based on the joint IMF-World Bank Climate Policy Assessment Tool suggests that even partial elimination of existing energy subsidies would help Algeria achieve its greenhouse gases emission reduction goals, boost fiscal revenue, encourage the expansion of renewable energy, and generate considerable environmental and public health benefits. Those reforms would create fiscal space for priority budget spending including on targeted social transfers and investment in adaptation to climate change. Strengthening public finance management would enable Algeria to maximize the growth and green dividend of public spending.
April 8, 2024
Kingdom of the Netherlands–The Netherlands: 2024 Article IV Consultation-Press Release; and Staff Report
Description: The economy has cooled, but signs of overheating remain. After two years of strong recovery, growth decelerated in 2023, reflecting the energy shock, tighter financial conditions, and a slowdown in key trading partners, particularly Germany. Still, core inflation remains elevated, reflecting a tight labor market, robust wage growth, and healthy profit margins. Fragmented results in November elections are leading to a prolonged government formation, with possible implications for pro-growth and climate policies.
April 8, 2024
Kingdom of the Netherlands–The Netherlands: Selected Issues
Description: Selected Issues
April 8, 2024
Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment
Description: The Netherlands FSAP focused on three cross-cutting themes—housing, non-banks, and climate risks—while carrying out a comprehensive review of financial sector oversight. The FSAP reviewed the resilience of the Dutch financial system against a set of conjunctural and structural challenges to the economy: the conjunctural challenges included slowing economic growth amid tighter financial conditions, elevated housing prices, large and interconnected nonbanks with major pension reforms underway, and the shift in securities markets trading from London to Amsterdam since Brexit, which raised Amsterdam to systemic importance for the euro area (EA); and the structural challenges focused on climate issues, including climate physical risks associated with roughly a quarter of the country being below sea level, and nature-related transition risks from an uncertain policy path to bring down nitrogen depositions to contain biodiversity loss and comply with European Union (EU) Directives.
April 2, 2024
Republic of Tajikistan: Request for a Twenty-Two-Month Policy Coordination Instrument-Press Release; Staff Report; Debt Sustainability Analysis; and Statement by the Executive Director for the Republic of Tajikistan
Description: Tajikistan’s economic performance remains favorable as remittance inflows and public investment continue to support domestic demand but there is uncertainty over the outlook in the context of heightened geopolitical tensions. Public debt is sustainable but sizeable investment needs constrain fiscal space, and the risk of debt distress remains high due to upcoming Eurobond repayments. Adherence to a deficit target of 2.5 percent of GDP is essential to anchor debt sustainability, while advancing reforms to increase space for priority social and development spending. The authorities have requested a twenty-two-month arrangement under the Policy Coordination Instrument (PCI) to anchor macroeconomic policies and foster inclusive growth. Staff supports the request for the new arrangement. The Letter of Intent and Program Statement set out policies to support the program’s objectives.
March 28, 2024
Colombia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia
Description: With the sharp growth slowdown in 2023 from an overheated post-pandemic recovery, the Colombian economy has reached more sustainable levels of economic activity and domestic demand, with a marked reduction in domestic and external imbalances owing to appropriately tight macroeconomic policies. Market confidence has improved, but risk premia remain high compared to peers. Meanwhile, progress on the social reforms in Congress has been limited.
March 27, 2024
Angola: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
Description: Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock, as both oil production and prices weakened, and the debt moratorium ended. In response, the authorities took significant fiscal consolidation measures, including by cutting fuel subsidies, and tightened monetary policy. Angola continues to face significant challenges, including debt vulnerabilities and the need to diversify the economy as oil production declines over the long term. The authorities’ reform agenda, including the new 2023–27 National Development Plan, is focused on these challenges.