Country Reports
2016
May 1, 2016
Republic of Mozambique: Technical Assistance Report on VAT Management and its Relations with the Main Functions of the Tax Administration
Description: [This report is only available in Portuguese] The report assesses current VAT management procedures and recommends measures to improve VAT administration.
April 29, 2016
Hungary: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Hungary
Description: This paper discusses backgrounds and recent developments in the economy of Hungary. The Hungarian economy has been growing at a robust pace over the past few years helped by supportive macroeconomic policies, a favorable external environment, and high utilization of European Union (EU) funds. Unemployment declined sharply, amid a continuous rise in labor participation. Inflationary pressures have remained subdued. Better-than-budgeted fiscal performance last year helped reduce the public debt ratio. But 2016 is not going to be very encouraging for Hungarian economy. Growth prospects remain subdued reflecting an adverse business climate. The balance of risks is tilted to the downside.
April 29, 2016
Ukraine: Technical Assistance Report-Self-Funding of the National Securities and Stock Market Commission
Description: This paper discusses the self-funding model of the National Securities and Stock Market Commission (NSSMC) in Ukraine. There are a number of challenges with NSSMC’s funding and the constraints placed on it through the Ukrainian government budget process. The analysis conducted by the NSSMC and reviewed by the mission confirms the general benefits of moving to a self-funding model for the NSSMC. The legislative measures should be complemented by improvements in the NSSMC systems and processes. Self-funding of securities and other financial services regulators is increasingly becoming the international norm. The trend to self-funding is even more pronounced within Europe.
April 22, 2016
Turkey: Selected Issue
Description: This paper discusses key issues of Turkey’s economy including private savings in Turkey, increase in the minimum wage for 2016, and nonfinancial corporate sector debt in Turkey. Over the last decade and half, Turkey successfully stabilized its macro economy. In the aftermath of the 1999–2001 economic crises, Turkey pursued a highly successful policy of macroeconomic stabilization. At the same time, however, private sector saving rate decreased significantly, leading to a current account deficit. The minimum wage increased by 30 percent in January 2016, affecting about 8 million workers directly. Nonfinancial corporate sector debt has increased substantially in recent years, on the back of increased foreign currency leverage.
April 22, 2016
Turkey: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey
Description: This paper discusses key issues related to Turkey’s economy. Economic growth of Turkey continues to show resilience despite several shocks. Growth remains based on domestic demand, in turn, supported by accommodative monetary and fiscal policies. With the economy projected to grow at 3.8 percent in 2015, output and unemployment gaps are practically closed. But, growth is still below both the historical average and the authorities’ long-term target. Potential growth is also slowing. The employment rate is low, especially among women. To tackle these issues, the government has announced ambitious program of reforms aiming to increase potential growth and reduce external imbalances.
April 22, 2016
Central African Economic and Monetary Community (CEMAC): Financial System Stability Assessment
Description: This paper provides detailed assessment of the Central African Economic and Monetary Community's (CEMAC’s) financial system. Over the past decade, primarily as a result of high oil prices, CEMAC achieved robust economic growth, although lower than the SSA average, but insufficient to significantly reduce poverty. A poor business climate and weak governance are hampering financial sector development and its contribution to financing investments. The weakness of regional integration also limits the growth potential. The drop in oil prices by about 60 percent between June 2014 and January 2015 has had a large impact on CEMAC countries’ macroeconomic performance.
April 13, 2016
Colombia: Technical Assistance Report-Detailed Assessment of Observance of Key Attributes of Effective Resolution Regimes for Financial Institutions-Pilot of the Draft Assessment Methodology
Description: This paper provides a detailed assessment of key attributes of effective resolution regimes for financial institutions in Columbia. The authorities of Columbia have strong powers to manage weak and failing financial institutions and a track record of using them. Colombia’s resolution regime, however, has shortcomings with respect to standards set in the key attributes. Important resolution powers are not available to the authorities, the regime does not emphasize minimizing the exposure of taxpayers to loss, and taking resolution actions does not hinge on an assessment of non-viability. However, Columbia has a large and diversified financial system compared with peer countries, with significant cross-border institutions and large mixed function conglomerates.
April 11, 2016
Botswana: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana
Description: This paper presents an overview of Botswana’s economy. Botswana’s diamond endowment—along with its track record of good macroeconomic policy management and political stability—contributed to high average economic growth and strong fiscal and balance-of-payments positions in recent years. Despite these achievements, Botswana faces unemployment, water and electricity shortages, and inefficiency of government operations. These challenges need to be addressed. Real GDP growth is estimated to be negative in 2015 owing to a decrease in global demand for diamonds and a deceleration of activity in the non-mining sector. However, the economy is expected to recover gradually in next three years driven by a gradual pick up in diamond prices and fiscal stimulus.
April 8, 2016
Nigeria: 2016 Article IV Consultation- Press Release; Staff Report; and Statement by the Executive Director for Nigeria
Description: This paper discusses outlook and risk for Nigeria. Its economy has been hit hard by global developments that have aggravated longstanding development weaknesses. Macrofinancial outcomes are closely linked with the price of oil. Policy uncertainty has amplified the impact of global developments. The large permanent terms-of-trade shock requires a significant macroeconomic adjustment. It is important to initiate urgently an integrated package of policies centered on a fundamental change in the nature of government; reducing external imbalances (including real exchange rate realignment); further safeguarding the resilience and improving the efficiency of the banking sector; and implementing structural reforms for inclusive growth.
April 8, 2016
Nigeria: Selected Issues
Description: This paper discusses a few selected issues of the Nigerian economy—options and strategies for a fiscal rule for oil wealth management, enhancing the effectiveness of monetary policy, and recent developments and prospects of capital flow. Despite its diversified economy, Nigeria’s fiscal policy is heavily dependent on the oil sector. This paper explores options for a formalized rule-based approach to setting a “depoliticized” budget oil price. Two boom-and-bust episodes since early 2000 have highlighted the challenges in the current monetary policy framework. Nigeria has also been characterized by sizable capital outflows, which have diminished recently.