Country Reports
2025
March 20, 2025
Belgium: 2025 Article IV Consultation-Press Release; and Staff Report
Description: The economy has been resilient to a series of shocks, but growth is slowing, and disinflation is facing headwinds. The labor market has been strong but shows early signs of cooling. Labor-cost competitiveness has declined with wage growth outpacing sluggish productivity. Successive shocks have increased structural fiscal deficits and public debt. Protracted coalition negotiations after elections in June 2024 stalled policymaking; a new federal government was formed in February 2025.
March 19, 2025
El Salvador: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for El Salvador
Description: Following a strong rebound in economic activity in 2021, real GDP is estimated to have expanded by 2.8 percent last year. Meanwhile, inflation jumped to 7¼ percent, and the current account deficit rose sharply partly reflecting higher commodity prices and despite a narrowing of the fiscal deficit. Reserve coverage has fallen further, sovereign spreads remain high, and financing options are limited, with continued reliance on expensive short-term borrowing. A pension reform was recently enacted aimed at increasing the generosity of benefits and mobilizing near-term financing but adding to the system’s structural weaknesses.
March 18, 2025
Nepal: Fifth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Nepal
Description: Political uncertainty remains high with another change of government in July 2024—the fifth since the beginning of the Fund-supported program. Substantial flooding and landslides in September 2024 further weighed on sluggish domestic demand, though conversely helping strengthen the external position and easing inflation pressures. Non-performing loans have risen, bank profitability has weakened, and the financial health of savings and credit cooperatives (SACCOs) has deteriorated. Growth is expected to pick up to 4.2 percent in FY2024/25, supported by further expansion in hydropower generation and a higher execution rate of public capital expenditure, including on post-flood reconstruction. Average inflation is expected to remain close to the authorities’ target of about 5 percent.
March 13, 2025
St. Lucia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for St. Lucia
Description: Healthy tourist arrivals and an expansionary fiscal stance have supported the economy and helped reduce unemployment, while inflation is declining rapidly on the back of lower commodity prices. The financial sector is broadly healthy, but credit growth has been sluggish, except in the rapidly expanding credit union sector.
March 11, 2025
Central African Economic and Monetary Community (CEMAC): Press Release; Staff Report; and Statement by the Executive Director
Description: The CEMAC’s economy lost momentum in 2023. The external position weakened, with the current account shifting to a deficit and foreign reserve accumulation slowing. While inflation continued to ease, it remained elevated. Available data indicate a deterioration in the underlying fiscal positions of many countries. The near-term outlook points to stronger economic activity, with growth projected to accelerate to 3.2 percent in 2024, supported by elevated oil prices and a rebound in oil output. However, the end-June 2024 regional policy assurance on NFA––and, according to preliminary information, the end-December 2024 targets––were not met, indicating a deviation in reserves from the targeted path. Debt vulnerabilities have also worsened in some countries, as evidenced by the growing pressures in the regional government debt market. Following the strong commitment expressed at the extraordinary Heads of State Summit in December 2024 to address macroeconomic imbalances and strengthen regional institutions, all countries are expected to tackle fiscal slippages, restore fiscal prudence, and implement structural reforms to steer the region toward a more resilient medium-term outlook. This should help reduce risks to the capacity to repay the Fund. However, the projections remain uncertain, as the details of corrective measures and reforms are still being finalized between staff and national authorities.
March 5, 2025
Angola: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
Description: The economy recovered in 2024 as oil sector rebounded from its slump. However, fiscal consolidation efforts somewhat waned, auguring the start of a political cycle. Buffers built during the 2018–21 EFF—supported program are being eroded by fiscal slippages from higher capital expenditures and a slower fuel subsidy reform. Nevertheless, public debt relative to GDP declined in 2024, benefiting from high nominal GDP growth and debt repayments. High external debt service constrains development spending, while oil dependence represents a drag on sustainable growth. Inflation remains elevated, fueled by exchange rate depreciation, and import substitution measures that have restricted food supply. The National Development Plan 2023–27 remains the main element for the authorities’ diversification strategy.
March 4, 2025
Brunei Darussalam: Stand-Alone Proposal to Move Brunei Darussalam to a 24-Month Article IV Consultation Cycle from its Current 12-Month Cycle
Description: Brunei's economy remains strong, with its resilience boosted by comfortable buffers and continued prudent macroeconomic policies. The outlook is stable. As in the 2024 Article IV Consultation, risks remain balanced; global policy uncertainty is mitigated, inter alia, by robust commodity prices.