Country Reports
2017
July 5, 2017
Malawi: Economic Development Document
Description: This Economic development Document presents an overview of Malawi’s Development Plan. Disappointing results with respect to implementation of Malawi Growth and Development Strategy II have triggered a qualified rethink in Malawi’s development planning process. There is a growing recognition that Malawi needs a more realistic development plan, in terms of both the underlying assumptions and resource availability, as well as with fewer priorities and a greater emphasis on implementation. Climate change has also become a major new factor in this process. The recent formation of a quasi-independent National Development and Planning Commission is expected to help in improving the independence of the planning process in Malawi.
July 5, 2017
St. Kitts and Nevis: 2017 Article IV Consultation- Press Release; Staff Report
Description: This 2017 Article IV Consultation highlights that the economic performance of St. Kitts and Nevis moderated in 2016. Growth moderated, reflecting the deceleration in tourism-linked sectors and contraction in manufacturing output, while still exceeding the average growth in the Eastern Caribbean Currency Union region. Consumer inflation was negative, reflecting the favorable tax environment and low international fuel prices, but end-year inflation turned positive as these effects started to subside. Growth is expected to average at about 3 percent in the medium term. Inflation is projected to rise with the expected rise in fuel prices, remaining about 2 percent in the medium term.
July 5, 2017
Cameroon: Request for a Three-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Cameroon
Description: This paper discusses Cameroon’s Request for a Three-Year Arrangement Under the Extended Credit Facility (ECF). Cameroon has been hit by significant export price declines and security threats since 2014. Oil revenue declined and security and humanitarian spending increased, while large infrastructure programs continued, leading to widening fiscal and current account deficits, rapidly accumulating external debt and a decline in imputed reserves. The Cameroonian authorities are requesting a three-year program under the ECF in the amount of SDR 483 million to restore external and fiscal sustainability, and lay the foundations for sustainable, private-sector led growth. The IMF staff supports the authorities’ request for an ECF-supported program.
July 5, 2017
Vietnam: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam
Description: This 2017 Article IV Consultation highlights that Vietnam’s dynamic economy continues to perform well, aided by sound economic fundamentals. Growth moderated to 6.2 percent in 2016, reflecting the impact of a drought and land salinization on agriculture and lower oil production. Weakness in the oil sector continued in the first quarter of 2017, but the underlying growth momentum remains robust underpinned by strong manufacturing activity and foreign direct investment, robust domestic demand, and a rebound in agricultural production. For 2017, growth is projected at 6.3 percent and headline inflation is projected to stabilize at about 5 percent as administered prices continue to be adjusted.
July 5, 2017
Vietnam: Selected Issues
Description: This Selected Issues paper analyzes the impact of environment and climate change on Vietnam’s economic growth. Vietnam’s economy and population are expected to be increasingly affected by climate change. In addition, the country’s growth model—which permitted quick reduction of poverty—has been unsustainably relying on mining and natural resources. The level of air, land and water pollution has also increased in the country. Well aware of the critical challenges faced by the country, the government has undertaken numerous initiatives and programs to adapt the economy to climate change risks and transform the growth model to support an environmental-friendly economy, but significant challenges remain.
July 3, 2017
The Gambia: Request for Disbursement Under the Rapid Credit Facility, and Proposal for a Staff-Monitored Program-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
Description: This paper discusses The Gambia’s Request for Disbursement Under the Rapid Credit Facility, and Proposal for a Staff-Monitored Program. The authorities have committed to lowering net domestic borrowing (NDB) from 11.4 percent in 2016 to a fiscal anchor of 1 percent of GDP in 2017 and beyond, and refraining from monetary financing. External budget support of 7.2 percent of GDP will be complemented by a set of non-tax revenue and expenditure measures of 5 percent of GDP to achieve the NDB target. The IMF staff supports the authorities’ request. The IMF staff also views the package of measures the authorities have committed to as representing a very significant adjustment effort.
June 30, 2017
Republic of Lithuania: Selected Issues
Description: This Selected Issues paper examines the reasons behind Lithuania’s low tax-GDP ratio relative to the European Union (EU). At end-2015, Lithuania had nearly the lowest tax-GDP ratio in the EU, along with Bulgaria and Romania. The tax revenue shortfall relative to the EU is for the most part attributable to weak tax administration and tax policy, with the structure of the economy playing a secondary role. The second largest contribution to the tax revenue shortfall relative to the EU comes from social security contributions. The shortfall is driven primarily by the structure of the economy, and to a smaller extent by tax administration.
June 30, 2017
Republic of Lithuania: 2017 Article IV Consultation-Press Release and Staff Report
Description: This 2017 Article IV Consultation highlights that the economy of Lithuania has been gathering momentum, following sluggish performance in 2015 and most of 2016. Real GDP expanded by 3.9 percent in the first quarter of 2017 after rising by 2.3 percent in 2016. Strong private consumption, on the back of robust wage growth and low inflation that supported purchasing power, has long been a main driver of growth. Building on recent momentum, economic growth should be strong in 2017, rising to 3.2 percent. Improving external conditions and a turnaround in European funds absorption, as well as high capacity utilization, should spur exports and investment.
June 30, 2017
United Republic of Tanzania: Sixth Review Under the Policy Support Instrument and Request for a Six-Month Extension of the Policy Support Instrument-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
Description: This paper discusses Tanzania’s Sixth Review Under the Policy Support Instrument (PSI) and Request for a Six-Month Extension of the PSI. Tanzania’s macroeconomic performance has been strong, albeit with a recent deceleration in economic growth. Program performance under the PSI has been broadly satisfactory. Most quantitative targets for December 2016 and March 2017 were met. Although progress in structural reforms identified under the program has been generally slow, the authorities have stepped up efforts to advance them. The IMF staff supports the authorities’ request for a 6-month extension of the PSI arrangement and recommends completion of its sixth review.
June 29, 2017
Colombia: Review Under the Flexible Credit Line Arrangement-Press Release and Staff Report
Description: This paper discusses Colombia’s Review Under the Flexible Credit Line (FCL). Colombia continues to have very strong economic fundamentals and institutional policy frameworks. The policy adjustment to permanently lower oil prices was timely and decisive. Tight monetary policy helped anchor inflation expectations in the face of large but temporary inflation shocks. The exchange rate continued to float. Fiscal policy tightened as prescribed by the fiscal rule, while protecting social and infrastructure spending. A structural tax reform, including a 3 percentage-point increase in the value-added tax, became effective in January 2017. The IMF staff recommends the completion of the review under the FCL arrangement for Colombia.