Country Reports
2018
July 6, 2018
Somalia: Second and Final Review Under the Staff Monitored Program and Request for a New Staff Monitored Program-Press Release and Staff Report
Description: Recent developments are broadly favorable and policies are aligned with staff recommendations and program priorities. Reflecting the favorable rainy season, economic activities are recovering from the 2016–17 drought and inflation is easing. The authorities remain strongly committed to policy implementation under the second Staff-Monitored Program (SMP II) which expired in April 2018, and have requested a follow-up 12-month SMP.
July 5, 2018
Tuvalu: 2018 Article IV Consultation – Press Release; Staff Report and Statement by the Executive Director for Tuvalu
Description: Tuvalu is a fragile micro state. The country’s remoteness, narrow production base, and weak banking sector constrain private sector activity, leaving public expenditure as the main source of growth. The DSA finds that Tuvalu remains at high risk of debt distress.
July 5, 2018
Mongolia: Fourth Review under the Extended Fund Facility Arrangement and Request for Modification of Performance Criteria – Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Mongolia
Description: A three-year arrangement for Mongolia under the Extended Fund Facility (EFF) was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million (435 percent of quota, or about $425 million). The arrangement is part of a $5.5 billion multi-donor financing package that supports the authorities’ Economic Recovery Plan. The extended arrangement is subject to quarterly reviews.
July 5, 2018
Republic of Moldova: Third Reviews under the Extended Credit Facility and Extended Fund Facility Arrangements and Request for Modification of Performance Criteria – Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
Description: The economy strengthened in 2017. Higher-than-expected GDP growth was driven by strong domestic demand and a positive external environment. Inflation slowed, driven by regulated and food prices, prudent policies and exchange rate appreciation, to below the target of the National Bank of Moldova (NBM).
July 4, 2018
Germany: 2018 Article IV Consultation – Press Release; Staff Report and Statement by the Executive Director for Germany
Description: The Germany economy has performed very well in recent years, supported by prudent economic management and past structural reforms. Growth is robust, employment is rising, and the unemployment rate has fallen to levels not seen in decades. Inflation remains low but wage growth is picking up, reflecting the strength of the labor market. Looking beyond these positive cyclical developments, unfavorable demographics will soon weigh on potential growth and put pressure on public finances. Having already accumulated sizable buffers through savings, Germany should now prioritize domestic investment in physical and human capital to prepare for the future. The new government's coalition agreement contains several welcome measures in this direction, but more forceful actions to boost labor supply and increase labor productivity would help stimulate domestic investment and reduce Germany’s large current account surplus.
July 3, 2018
Honduras: 2018 Article IV Consultation – Press Release; Staff Report and Statement by the Executive Director for Honduras
Description: The IMF-supported program (2014-17) succeeded in reducing Honduras' macroeconomic imbalances. The next step is to adopt institutional reforms to entrench macroeconomic stability to put Honduras on a higher potential growth path.
July 3, 2018
New Zealand: 2018 Article IV Consultation – Press Release; Staff Report; and Statement by the Executive Director for New Zealand
Description: New Zealand's economy has enjoyed a solid expansion since 2011. With a persistent net migration wave, potential output has moved closely in line with actual output, and economic slack has decreased slowly. Macroeconomic imbalances overall have narrowed, although macro-financial vulnerabilities have risen with rapid house price increases. The new coalition government seeks to make growth more inclusive.
July 3, 2018
New Zealand: Selected Issues
Description: This Selected Issues paper focuses on gaps and multiplier effects of infrastructure investment in New Zealand. There has been high quality work done to quantify the infrastructure gap for New Zealand by Oxford Economics on behalf of the Global Infrastructure Hub, drawing on international experiences and local data sources, but recognizing the risk that the infrastructure gap may be even larger than that stated in this work. This paper provides further analysis about the effects on New Zealand’s economy of closing the infrastructure gap. Closing the gap has quantifiable benefits, not just because it is a short-term stimulus to aggregate demand, but because of longer-lived effects on productivity, benefiting all sectors of the economy. There are prospective gains from closing New Zealand’s infrastructure gap. New Zealand has improved its infrastructure spending in the past several years. Nonetheless, there is scope to expand it further, to reduce its (admittedly small, but probably understated) infrastructure gap to match other advanced economies, and possibly help with regional development concerns.
July 3, 2018
United States: 2018 Article IV Consultation – Press Release; Staff Report and Statement by the Executive Director for United States
Description: Unemployment is low, inflation is well contained, and growth is set to accelerate. During the course of this administration, the economy is expected to enter the longest expansion in recorded U.S. history.
June 29, 2018
Seychelles: First Review under the Policy Coordination Instrument and Request for Modification of Targets - Press Release; Staff Report
Description: This paper discusses Seychelles’ First Review Under the Policy Coordination Instrument (PCI) and Request for Modification of Targets. All quantitative targets for end-December 2017, the program’s first review test date, were met. Although there are no structural reform targets due for the first review, the structural agenda for 2018 is proceeding in line with the program. Given the authorities’ strong program implementation and continued commitment to safeguarding macroeconomic stability, the IMF staff supports the authorities’ request for the completion of the first review under the PCI and the modification of the end-June 2018 and end-December 2018 quantitative targets for reserve money.