Country Reports
2024
July 11, 2024
Brazil: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
Description: Brazil’s economy has shown remarkable resilience amid the ongoing disinflation. Economic activity has grown steadily, surpassing expectations, reflecting favorable demand and supply factors. With proactive and adequately restrictive monetary policy, headline inflation has declined to the target tolerance interval. Longstanding challenges remain, including elevated public debt and slow convergence to higher living standards. The authorities have advanced their ambitious sustainable and inclusive growth agenda, including the approval of a landmark VAT reform.
July 11, 2024
Republic of Moldova: Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, First Review Under the Arrangement Under the Resilience and Sustainability Facility, and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
Description: Moldova’s economic recovery from the multiple shocks is proceeding, albeit at a slower pace than expected. Progress towards EU accession continues. Presidential elections are scheduled in October, to be combined with a referendum on EU accession.
July 11, 2024
Uruguay: 2024 Article IV Consultation-Press Release and Staff Report
Description: In 2023, Uruguay confronted the impact of a once-in-a-century drought, causing significant direct losses to the primary sector. The economic situation in Argentina created further headwinds for Uruguay, although with no signs of financial spillovers. The economy remained resilient, owing to the authorities’ sound macroeconomic policies, the country’s political stability, and strong institutions. The current administration, in office since 2020, has implemented a significant upgrade of the fiscal and monetary policy frameworks and has advanced decisive structural reforms. Consolidating these gains should be the most important priority.
July 10, 2024
Republic of Madagascar: Request for an Arrangement Under the Extended Credit Facility and Cancellation of the Current Arrangement Under the Extended Credit Facility and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; Staff Supplement; Staff Statement; and Statement by the Executive Director for Republic of Madagascar
Description: Real GDP growth stalled at 3.8 percent in 2023, dampened by the deterioration of global economic prospects and the negative effect of electoral uncertainty on investment. After peaking in March 2023, inflationary pressures have eased. Led by a new presidential mandate, the authorities are requesting a cancellation of the current Extended Credit Facility (ECF) that ends in July 2024, and new ECF and Resilience and Sustainability Facility (RSF) arrangements. Cumulative disbursements under the current ECF reached SDR 171.08 million (70 percent of quota, about 78 percent of the total approved amount).
July 8, 2024
United Kingdom: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom
Description: The UK economy is approaching a soft landing, following a mild technical recession in 2023. A modest recovery is projected, with 0.7 percent growth in 2024, strengthening to 1.5 percent in 2025. Inflation has fallen rapidly from double digit levels last year in the context of easing energy prices and tight policies. Assuming wage and services inflation continue to moderate from their current elevated levels, inflation should return durably to target in the first half of 2025. The medium-term outlook is affected by significant public spending pressures, notably in healthcare, and the downshift in labor productivity growth post-GFC, exacerbated by recent adverse shocks (Brexit, COVID, energy price surge). Risks to the outlook are balanced. A general election is scheduled on July 4.
July 8, 2024
Republic of Serbia: Third Review Under the Stand-By Arrangement and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Serbia
Description: Serbia continues to recover well from the energy crisis. The authorities remain committed to policies that will help maintain strong external and fiscal buffers and that will support disinflation. With the planned large increases in public investment, it will be important to further strengthen public investment management and transparency. Additional energy pricing and governance reforms will bolster SOE finances. The authorities will continue to treat the SBA as precautionary.
July 1, 2024
Jordan: First Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria-Press Release; and Staff Report
Description: Jordan’s economy continues to show resilience despite a challenging external environment. The economy continues to grow, albeit at a somewhat slower pace, inflation is low, and reserve buffers are strong. Growth is projected to pick up pace in 2025, contingent upon the Israel-Gaza conflict ending and its impact fading. Uncertainty is high, however, and structural challenges remain, with continued high unemployment.
July 1, 2024
Paraguay: 2024 Article IV Consultation, Third Review Under the Policy Coordination Instrument, Modification of Targets, and First Review Under the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report
Description: Paraguay's economy had a strong year in 2023, growing 4.7 percent. Growth this year continues to be led by robust agricultural production, exports, and high electricity generation. Monetary policy was adjusted timely to rapidly falling inflation and is now approaching a neutral stance. The fiscal position deteriorated but consolidation has started. The external current account is expected to stay close to balance. Banks remain profitable and well provisioned.