Country Reports
2016
December 8, 2016
Namibia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Namibia
Description: This 2016 Article IV Consultation highlights that Namibia has experienced remarkable growth and economic progress since the financial crisis. Strong policy frameworks and expansionary domestic policies have contributed to macroeconomic stability, robust growth, and rising living standards. Yet deep-rooted structural impediments have kept unemployment high and unresponsive to growth, contributing to persistently high inequality. The outlook remains positive with considerable vulnerabilities and risks. Growth is projected to temporarily weaken to 1.6 percent in 2016 as the construction of large mines ends and the government starts consolidating.
December 7, 2016
Finland: Financial System Stability Assessment
Description: This paper discusses key findings of the Financial System Stability Assessment concerning Finland. It reveals that Finland’s banking system remains well capitalized and profitable. Although low interest rates have squeezed net interest income, banks have increased income from trading and insurance and reduced cost-income ratios, helping to maintain profitability. Nonperforming loans have remained low and capitalization ratios are well above requirements, though buffers may be exaggerated by the aggressive use of risk weights. The Net Stable Funding Ratio suggests that vulnerabilities from maturity mismatches are limited in aggregate. Nevertheless, previously identified vulnerabilities remain, and some have increased.
December 7, 2016
Finland: Selected Issues
Description: This Selected Issues paper examines Finland’s sectoral balance sheets and how they have evolved since the global financial crisis; the analysis reveals that financial vulnerabilities have risen in most sectors. Indebtedness has increased for nonfinancial corporations (NFCs), households, and the government, increasing their financial fragility and vulnerability to shocks. Also, cross-border financial exposures have risen on both sides of Finland’s balance sheet. Specifically, banks’ balance sheets have grown considerably, largely owing to a rise in foreign liabilities. NFCs and the government have also relied in part on foreign investors to finance their debt increases.
December 7, 2016
Finland: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
Description: This 2016 Article IV Consultation highlights that the growth in Finland has turned tepidly positive again following a deep recession. GDP increased by 0.2 percent in 2015 driven by stronger private consumption and a rebound in investment. Although net export growth was weak, falling oil prices contributed to the nominal trade balance shifting into surplus, reducing the current account deficit. Better-than-expected fiscal performance brought the deficit back under the 3 percent Stability and Growth Pact limit in 2015. The recovery is likely to continue, but growth is set to remain slow at about 0.9 percent in 2016 and 1.1 percent in 2017. This outlook is subject to downside risks.
December 7, 2016
Mali: Sixth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion-Press Release; and Staff Report
Description: This paper discusses Mali’s Sixth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion. Economic activity in Mali remains robust, aided both by higher public investment and accommodative monetary conditions. Inflation remains subdued, helped by favorable weather conditions and low global inflation. The external position has weakened, reflecting strong domestic demand growth, but is expected to strengthen in the near term as terms of trade improve and demand growth slows down. The near-term outlook remains positive but is subject to downside risks, stemming mainly from the fragile security conditions.
Notes: Also Available in French
December 1, 2016
Republic of Mozambique: Technical Assistance Report on Public Financial Management
Description: The report contributes to the Mozambican authorities on reviewing the implementation of the government’s public financial management (PFM) reform strategy.
November 29, 2016
Cabo Verde: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
Description: This 2016 Article IV Consultation highlights that the economic growth of Cabo Verde in 2015 stagnated at 1.5 percent, slightly below the 1.9 percent registered in 2014. Tourism recovered and remittances remained robust, but foreign direct investment (FDI) and public investment slowed. The unemployment rate declined to 12.4 percent, as did youth unemployment, which nevertheless remained high at 28.6 percent. Consumer price inflation remained muted owing to lower food and energy prices, averaging 0.1 percent for 2015. In 2016, growth is forecast to recover to 3.2 percent supported by FDI, domestic demand, agriculture, and tourism, which should benefit from the mild upswing in Europe.
November 29, 2016
Cabo Verde: Selected Issues
Description: This Selected Issues paper examines whether the recent slowdown in private sector credit growth in Cabo Verde is demand or supply driven. Although in the late 2000s, demand factors have been the main drivers in Cabo Verde’s credit market, supply dynamics’ role has increased in recent years. For Cabo Verde to promote private sector-led growth and sustainable economic development, reforms aiming at strengthening both credit demand and supply will be essential. These include improving the business environment for the private sector as well as strengthening the financial sector by ensuring prudent banking supervision and an effective resolution of the nonperforming loan overhang.
November 28, 2016
Guinea: Eighth and Final Review Under the Extended Credit Facility Arrangement and Financing Assurances Review, and Request for Extension of the Current Arrangement-Press Release; and Staff Report
Description: This paper discusses Guinea’s Eighth and Final Review Under the Extended Credit Facility (ECF) Arrangement and Financing Assurances Review, and Request for Extension of the Current Arrangement. Guinea’s medium-term economic prospects are good. Growth is projected to average 5 percent during 2017–20, on the back of higher investments in the mining sector, increases in food production, and better electricity services. The recovery in the agricultural sector will allow the growth rebound to be shared by larger segments of the population, but the sector remains vulnerable to weather-related supply shocks. The IMF staff supports the completion of the eighth review under the ECF arrangement and financing assurances review.
November 28, 2016
Chad: Third and Fourth Reviews Under the Extended Credit Facility Arrangement, and Requests for Waivers of Nonobservance of Performance Criteria, Augmentation of Access, Extension of the Current Arrangement, and Rephasing of Disbursement-Press Release; Staff Report; and Statement by the Executive Director for Chad
Description: This paper discusses Chad’s Third and Fourth Reviews Under the Extended Credit Facility (ECF) arrangement, and Requests for Waivers of Nonobservance of Performance Criteria (PCs), Augmentation of Access, Extension of the Current Arrangement, and Rephasing of Disbursements. The authorities in Chad have implemented substantial fiscal adjustment to balance the budget and contain the accumulation of arrears. Nonetheless, liquidity conditions remain very tight, and social tensions have risen recently owing to the large cuts in current spending. IMF staff supports the completion of the third and fourth reviews under the ECF arrangement, the waivers of nonobservance of PCs on the nonaccumulation of domestic arrears and nonaccumulation of external arrears.