Country Reports

March 23, 2016

Solomon Islands: Economic Development Documents- Medium-Term Development Plan, 2016-20

Description: This report describes Solomon Islands’ macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major source of financing. Solomon Islands’ government Medium Term Development Plan (MTDP) 2016–20 sets out development programs and projects supporting the draft National Development Strategy (NDS) 2016–35 objectives. The MTDP is rolling out five-year plan, revised annually, comprising development programs and projects. The MTDP effectively addresses key issues of the economy which are as follows: existing poverty situation and trends, factors influencing poverty, strategies and policies for poverty reduction, fiscal and debt framework, and safety nets and risk mitigation.

March 22, 2016

Mauritius: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Mauritius

Description: This paper discusses key issues related to the economy of Mauritius. In 2015, the economy of Mauritius has grown at moderate rate; inflation is low; and the external position has improved. However, macroeconomic conditions remain stable but the authorities face macrofinancial challenges stemming from the recent collapse of a large financial conglomerate, which affected the real economy, as well as risk exposures and potential spillovers from the massive offshore sector and its sizeable inter-linkages with domestic banking activities. Despite these challenges, the medium-term outlook remains favorable, as economic growth is set to be boosted by continued low fuel prices and the start of important investment programs.

March 22, 2016

Kenya: Second Reviews Under the Stand-by Arrangement and the Arrangement Under the Standby Credit Facility, and Requests for a New Twenty-Four Month Stand-By Arrangement, and a New Twenty-Four Month Arrangement Under the Standby Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Kenya

Description: This paper presents an overview of Kenyan economic development. It discusses recent economic development, outlook, and risks related to Kenyan economy, as well as policy and structural reforms. Although Kenya’s macroeconomic performance remains robust, external shocks complicated achievement of some program’s macroeconomic objectives. In light of persistent external risks and a weaker outlook, the authorities have requested continued program engagement with the IMF under new 24-month Stand-By Arrangement and Standby Credit Facility (with access of 130.67 percent and 65.33 percent of quota, respectively). The new program includes a comprehensive package of measures targeting a significant reduction in vulnerabilities, paving the way for an eventual exit from IMF arrangements.

March 18, 2016

Gabon: Selected Issues

Description: This paper discusses impact of the falling oil prices on the Gabon’s economy. With oil accounting for roughly 40 percent of its GDP, 45 percent of its government revenues, and nearly 85 percent of its exports in 2014, Gabon’s economic growth prospects depend on how it copes with the recent oil-price slumps. Economic performance during major oil-price declines clearly illustrates the vulnerability of Gabon and other oil-dependent countries in sub-Saharan Africa. The recent oil-price slump is bound to generate a major deceleration of Gabon’s non-oil economy. Given the strength of the government transmission channel, the authorities should support economic activity (through productive spending) while ensuring fiscal sustainability.

Notes: Also Available in French

March 18, 2016

Ukraine: Technical Assistance Report-Tax Administration Reforms and Governance Options

Description: This paper focuses on Ukraine’s tax administration reforms and governance options. The main purpose of this paper is to develop enhancing measures to support Ministry of Revenue and Duties in meeting government’s commitments under IMF program. This paper recommends to cease revenue deferral arising from trivial tax disputes by requiring at least a partial payment of disputed tax before the appeal goes forward; collect tax arrears by promoting installment arrangements that fit the crisis conditions; strengthen routine monitoring of filing and payment obligations to control tax discipline; and make mandatory that largest taxpayers deal with their tax affairs at the large taxpayer inspectorate offices instead of local offices.

Notes: Also Available in Ukrainian

March 18, 2016

Ukraine: Technical Assistance Report-Reforming the State Fiscal Services

Description: This paper discusses State Fiscal Service (SFS) Reform of Ukraine and a plan of action. This mission is a follow-up to the Fiscal Affairs Department (FAD) mission of July 2014 and has focused on the recently adopted reform plan for revenue administration in the SFS. In 2015, the revenue performance has met expectations for the major taxes. There are concerns that amounts for corporate income tax (CIT) advance payments and value-added tax refunds will erode future performance. Advance payments of CIT have not been credited against tax assessments. The 2014 FAD mission made a number of recommendations aimed at short-term revenue improvement before long-term institutional changes were adopted.

Notes: Also Available in Ukrainian

March 18, 2016

Gabon: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Gabon

Description: This paper discusses challenges, outlook, and risks of Gabon’s economy. Gabon’s economy is facing mounting headwinds. Economic activity benefited from a one-off boost in oil production in 2015, due to the introduction of new oil fields and productivity improvements, which are expected to help maintain overall growth about 4 percent in 2015. However, the slowdown in non-oil economy activity continued, led by construction, transport, commerce, and services. The main downside risk to the outlook remains weak fiscal adjustment to sharply lower oil prices. In the event of weaker-than-projected performance on oil revenues or government spending, government would be forced to substantially draw down on its deposit buffer and/or significantly increase borrowing.

Notes: Also Available in French

March 17, 2016

Mali: Technical Assistance Report-Tax Policy-Diagnostic Assessment

Description: This paper presents a diagnostic assessment of the tax policy of Mali. The diagnostic assessment looks at the country’s main taxes and levies; it is supplemented by a second report on the mining and petroleum sector. Tax revenues represented 15.37 percent of GDP in 2013, up slightly from the 2012 level (14.87 percent). The revenue structure has scarcely changed since the last general assessment mission conducted in 2011, and the analysis performed then remains relevant now. Mali’s corporate income tax and tax on industrial and commercial profits (IS-BIC) are in compliance with the West African Economic and Monetary Union harmonization directives. The IS-BIC rate is 30 percent.

Notes: Also Available in French

March 17, 2016

Mali: Technical Assistance Report-Mining Taxation: Modeling of Five Mining Operations

Description: This paper discusses Malian mining taxation. Mali’s industrial mining sector is predominantly gold mining, with six industrial mines currently active. Most of the mines are old, but some have substantial reserves; extensions are planned for the Syama, Morila, Kalama, Tabakoto-Segela, and Loulo-Gounkoto mines. The Fiscal Analysis for Resource Industries model was completed for five new projects with recent feasibility studies. The government revenue contributed by the five new projects is on the order of US$1.7 billion (constant dollars) over the next 10 years. The application of the 1999 or 2012 Mining Code increases the government’s share of income in comparison with the 1991 code.

Notes: Also Available in French

March 15, 2016

Indonesia: Selected Issues

Description: This paper focuses on the selected issues of the Indonesian economy: (1) banking sector condition in India, (2) corporate vulnerabilities, (3) analysis of macrofinancial linkages in Indonesia, and (4) infrastructure development in Indonesia. Overall, the banking sector appears well capitalized and profitable. However, rising vulnerabilities from corporate foreign currency leverage and challenging financial market conditions have raised concerns. The risk from the corporate sector remains manageable, and the authorities have strengthened the monitoring framework. Macrofinancial linkages are analyzed using two complementary approaches: sector-level balance sheet analysis and a panel vector autoregressive approach. This paper addresses macrofiscal issues surrounding infrastructure development in Indonesia.