Country Reports
2024
January 19, 2024
Nicaragua: 2023 Article IV Consultation-Press Release; and Staff Report
Description: The Nicaraguan economy remained resilient through multiple shocks over the past five years, supported by appropriate policies, substantial pre-crisis buffers (primarily government deposits), and multilaterals support. After a strong rebound in 2021, the economy continued to grow at a steady pace in 2022 and through June 2023 (3.8 percent). Inflation slowed down, the fiscal position turned into a surplus, and record-high remittances, sustained Foreign Direct Investment (FDI) and prudent policies supported a continued accumulation of gross international reserves. Banks remain well capitalized, and the loan portfolio is steadily improving with the economic recovery.
January 19, 2024
Pakistan: First Review Under the Stand-by Arrangement, Requests for Waivers of Applicability of Performance Criteria, Modification of Performance Criteria, and for Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Pakistan
Description: Recent developments. Following the 2022 floods and the acute financial pressures earlier in the year, economic activity has stabilized and inflation has begun to gradually decline on the back of strong policy adjustment. External pressures have eased somewhat since June, and the SBP has taken advantage of renewed inflows to begin rebuilding foreign exchange (FX) reserves. Fiscal performance has also improved, with the general government achieving a primary surplus in FY24Q1. Despite this welcome progress, the outlook is still challenging, and downside risks remain exceptionally high.
January 18, 2024
Australia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia
Description: Australia’s post-pandemic recovery remained strong. However, growth is weakening on the heels of tighter macroeconomic policies and financial conditions. While inflation has peaked, it remains persistently high. Labor market shows signs of easing, and the positive output gap is narrowing. Increased cost of living started to weigh on household consumption. The economy remains resilient in the near term but confronts a secular productivity slowdown. Financial stability risks remain contained although pockets of vulnerability exist and risks of spillovers from global financial conditions have increased since the last Article IV.
January 18, 2024
The Gambia: 2023 Article IV Consultation and Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
Description: The Gambia is consolidating its democratic and economic transformation. It recently organized peaceful and transparent presidential, parliamentary, and local elections. The previous 2020-23 ECF arrangement accompanied the country’s reforms and helped alleviate the repercussions of the COVID-19 pandemic and Russia’s war in Ukraine. The end of the electoral cycle offers a window of opportunity for the next two to three years to further strengthen economic reforms and promote inclusive growth.
January 17, 2024
Kenya: 2023 Article IV Consultation-Sixth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Augmentations of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criteria, Waiver of Applicability of Performance Criteria, and First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya
Description: The Kenyan economy remains resilient amid a confluence of global, regional, environmental, and domestic political risks. These factors, including costly and uncertain international bond market access for frontier market economies in an environment of “higher for longer” global interest rates, are adding to Kenya’s balance of payments and fiscal financing needs despite policy efforts to sustain domestic and external balances. The authorities’ EFF/ECF-supported program, approved in April 2021 and extended by 10 months in July 2023 to April 2025, continues to evolve to address the emerging challenges, including to restore market confidence while incorporating additional policy actions to reduce debt vulnerabilities, a key objective of the program. The program also endeavors to bolster Kenya’s medium-term prospects by enhancing fiscal risk management, strengthening external buffers, and improving the governance framework.
January 16, 2024
Republic of Mozambique: Third Review Under the Three-Year Arrangement Under the Extended Credit Facility, Requests for Modification of the Monetary Policy Consultation Clause, Waiver of Nonobservance of Quantitative Performance Criterion, Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique
Description: The economy continues growing steadily. Inflation pressures have declined sharply reflecting lower food and fuel prices. A fiscal correction is ongoing following the fiscal slippages from implementation challenges related to the single salary scale adopted in 2022. The security situation in the north has improved and general elections are planned for October 2024. Mozambique is facing tight domestic financing conditions combined with an external funding squeeze.
January 16, 2024
Cabo Verde: Third Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
Description: Cabo Verde has weathered the recent shocks well, and the authorities have been successful in maintaining macro-financial stability, supported by international partners. Despite a challenging global environment, Cabo Verde’s economy rebounded strongly in 2021 and 2022 and continues its strong macroeconomic performance in 2023.The near-term growth outlook is favorable despite some downside risks. Inflation is decelerating. The country is politically stable. However, Cabo Verde still faces substantial vulnerabilities. The public debt-to-GDP ratio though declining is still above pre-pandemic levels. Climate change poses a major threat, as Cabo Verde is one of the most water-scarce countries in the world.