Country Reports
2018
March 28, 2018
Rwanda: Technical Assistance Report-Government Finance Statistics
Description: This Technical Assistance Report discusses the findings and recommendations made by the IMF mission to assist Rwandan authorities in compiling annual government finance statistics (GFS) for the general government for FY2015/16 and high-frequency GFS for the budgetary central government and central government. It was observed that the annual GFS compilation is on track and even exceeding the expectations. The compilation of high frequency data should now be the focus of the authorities’ efforts. Quarterly Central Government data are expected to be compiled within 60 days for FY2017/18. Monthly BCG data are already compiled within 30 days from end of the period. In both cases, the Rwandan authorities have made some initial progress.
March 28, 2018
Rwanda: Technical Assistance Report-Government Finance Statistics
Description: This Technical Assistance Report discusses the findings and recommendations made by the IMF mission about compilation and dissemination of government finance statistics (GFS) in Rwanda. The mission reviewed the roadmap of the interagency GFS technical working group, the structure of the public sector, the GFS compilation process, and the conversion of source data to standard fiscal tables consistent with international standards. The mission fully endorsed the authorities’ work program going forward, and agreed that the step-by-step approach starting with producing solid and credible budgetary central government data. The mission cautioned that increasing frequency and expanding coverage of fiscal reports to include the local government sector and, eventually, the extrabudgetary units, will need to be an iterative process requiring continued determined efforts.
March 28, 2018
Myanmar: 2017 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Myanmar
Description: This 2017 Article IV Consultation highlights that Myanmar’s economy stabilized in 2016/17. The new government saw a challenging first year with lower-than-expected growth of 5.9 percent in 2016/17 mainly owing to weak agriculture production and exports, and temporary suspension of some construction projects in Yangon. Inflation moderated to 6.8 percent, and the current account deficit fell to about 3.9 percent of GDP in 2016/17 from 5.1 percent 2015/16. The medium-term macroeconomic outlook remains favorable. Growth is expected to rebound to 6.7 percent in 2017/18 mainly supported by a recovering agriculture sector and exports. Higher fiscal spending anticipated in the second half of 2017/18 owing to buoyant tax revenues will also support growth.
March 28, 2018
People’s Republic of China: Tax Policy and Employment Creation
Description: This Technical Assistance report presents an international perspective on the employment impact of tax policy, and develops recommendations considering the background in the People’s Republic of China. This report discusses the impact of tax policy including social security contributions on employment in China that covers both the taxation of employed labor and small- and medium-sized enterprises. The findings draw on economic theory, international experiences, as well as discussions with Chinese authorities during a workshop in Yangzhou and meetings in Beijing. The personal income tax on wages is low, but the tax wedge, which includes social security contributions, is high and follows an unsteady pattern, rising, falling, and again rising. The taxation of labor differs strongly by type and location of employment. The schedular system of the personal income tax means that labor taxes differ depending on the category into which income falls. Small businesses are offered some simplifications but are likely to still face disproportionally greater compliance costs.
March 28, 2018
Myanmar: Selected Issues
Description: This Selected Issues paper analyzes banking sector developments in Myanmar. It highlights that latent banking sector risks are surfacing, following a period of rapid credit growth and as banks adjust to updated financial regulations. Over time banks will need to enhance their credit risk management, and reduce the over-reliance on collateral values to safeguard lending. A banking system action plan has been developed, to enhance the banking system’s resilience, as well as strengthen the supervisory and resolution framework. The ongoing overhaul of the prudential framework and financial sector reforms will strengthen the banking sector and its role in supporting the economy.
March 23, 2018
Burkina Faso: Economic Development Documents
Description: This paper discusses various economic development documents of Burkina Faso. Economic Development Documents are prepared by member countries in broad consultation with stakeholders and development partners. They describe countries’ macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. The aim of the 2016–2020 National Plan for Economic and Social Development (PNDES) is to structurally transform the Burkinabè economy to generate strong, sustainable, resilient, and inclusive growth in order to create decent jobs for all and improve social well-being. As a national benchmark, the plan aims to achieve cumulative growth of per capita income to reduce poverty and meet the population’s basic needs within a fair and sustainable social framework. During the entire PNDES implementation phase, measures will be taken to improve the quality of institutions and strengthen the governance and the availability of qualified human resources to meet the economy’s structural transformation needs.
March 23, 2018
Bhutan: Technical Assistance Report-SARTTAC Report on National Accounts Statistics Mission
Description: This Technical Assistance Report discusses the findings and recommendations made the IMF mission to assist the Bhutanese authorities in improving estimates of annual GDP, and in developing methods for compiling quarterly GDP estimates. The mission found that the National Statistics Bureau (NSB) is engaged in a range of projects to improve Bhutan’s national accounts statistics. Updated annual GDP statistics signal an improvement in data quality, which should enhance policymakers’ ability to formulate and operationalize evidence-based decisions. Significant improvements to Bhutan’s national accounts statistics can be achieved using a three-step process. The NSB should also keep in mind the need to incorporate methodological and conceptual/definitional revisions during the benchmarking and rebasing process.
March 23, 2018
Lao People’s Democratic Republic: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao People’s Democratic Republic
Description: This 2017 Article IV Consultation highlights that the economy of Lao People’s Democratic Republic continues to perform well, supported by a favorable external environment and strong flows of foreign direct investment from its dynamic neighbors. Growth in 2017 was supported by the expansion of electricity exports, construction activity and financial services, but moderated to 6.8 percent as a result of the prohibition on illegal logging, tighter credit conditions and fewer tourist arrivals. Looking ahead, the outlook is positive, with growth on the order of 7 percent per year. Downside risks stem from high public debt and deficits, pockets of weakness, and high dollarization in the banking sector, and a vulnerable external position with low gross international reserves.
March 16, 2018
Kenya: Request for Extension of the Stand-By Arrangement -- Press Release and Staff Report
Description: This paper discusses Kenya’s Request for Extension of the Stand-by Arrangement (SBA). The extension is needed to provide additional time for the authorities to bring the program back on track and reach new understandings with IMF staff on policies and measures that would enable the completion of the pending reviews under the SBA for Kenya. The authorities have committed to strong corrective actions through adopting policies that will enable them to achieve program objectives and reduce near- and medium-term vulnerabilities. The IMF staff supports the authorities’ request for an extension of the SBA for Kenya.
March 16, 2018
Republic of Poland: Technical Assistance Report - Building Forward Estimates and Standardizing the Chart of Accounts
Description: This Technical Assistance Report discusses the findings and recommendations made by the IMF mission about building forward estimates and standardizing the chart of accounts in Poland. The workshops identified a range of cross-cutting issues, with recommendations provided for how to apply them more broadly over the next two years, with ongoing short-term expert support. It is recommended to apply a consistent approach to treating demand driven entitlement programs, by using the existing detailed projection models and methodologies that lie within agencies and funds, but ensuring that all indices and volume parameters are in line with central macroeconomic assumptions to ensure consistency.