Country Reports
2015
April 3, 2015
Hungary: Selected Issues
Description: This Selected Issues paper assesses the efficiency of public spending on health and education in Hungary, with a view to identifying potential efficiency gains and areas for reforms so as to lock in such gains. The paper finds potentially large room for efficiency gains over the medium term, particularly in the health sector. A frontier analysis using data envelopment methodology, suggests that savings from efficiency gains in the health and education sectors could amount up to about 3 percentage points of GDP over the medium term, of which 90 percent could be achieved from efficiency gains in the health sector.
April 3, 2015
Hungary: Staff Report for the 2015 Article IV Consultation
Description: This 2015 Article IV Consultation highlights that the Hungarian economy is growing at a strong pace helped by accommodative macroeconomic policies and improved market sentiment. Driven by strong domestic demand, output grew by 3.6 percent in 2014. Unemployment declined sharply reflecting the expansion of public works programs and job creation in the private sector. Headline and core inflation decelerated sharply, and inflation expectations fell below the National Bank of Hungary’s inflation target. Going forward, output growth is projected to decelerate to 2.75 percent in 2015, on account of a smaller domestic-demand impetus owing to less-supportive fiscal stance and lower investment growth.
April 3, 2015
Jamaica: Seventh Review Under the Extended Fund Facility and Request for Modification of Performance Criteria-Staff Report; Press Release; and Statement by the Executive Director for Jamaica
Description: This paper discusses Jamaica’s Seventh Review Under the Extended Fund Facility and Request for Modification of Performance Criteria. Risks to the program are slowly waning but remain high. Notwithstanding the authorities’ demonstrated resolve in implementing the program, more tangible signs of improvements in growth will be important to sustain the social consensus needed to continue on the reform trajectory. The program is on track. All December 2014 quantitative performance criteria were met and structural reforms have progressed broadly on schedule. Based on the continued strong performance and the authorities’ policy commitments, the IMF staff recommends completion of the seventh review.
April 2, 2015
United States: Financial Sector Assessment Program-Detailed Assessment of Implementation on the IOSCO Objectives and Principles of Securities Regulation
Description: This paper discusses key findings of the Detailed Assessment of Implementation of the IOSCO (International Organization of Securities Commissions) Objectives and Principles of Securities Regulation on the United States. The United States has large, well-developed, and complex securities and derivatives markets. Postcrisis, the legal mandates of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have significantly expanded. The level of funding of both the SEC and CFTC is a key challenge affecting their ability to deliver on their mandates in a way that provides confidence to markets and investors. The fragmented structure of equity markets remains a key challenge for the SEC.
April 2, 2015
Qatar: Staff Report for the 2015 Article IV Consultation
Description: This 2015 Article IV Consultation highlights that Qatar is implementing an ambitious diversification strategy, while retaining its systemic role in the global natural gas market. Qatar accounts for one-third of global liquefied natural gas trade and has emerged as an important global financial investor, labor importer, and donor. The authorities are executing a large public infrastructure program to advance economic diversification and prepare for the FIFA 2022 World Cup. The economy has maintained strong growth momentum so far despite the large drop in oil prices since summer 2014. The short-term growth outlook is positive, but lower oil prices will lead to a substantial deterioration of the fiscal and external balances.
April 2, 2015
Qatar: Selected Issues
Description: This Selected Issues paper discusses strengthening of fiscal policy and fiscal frameworks in Qatar. It proposes ways to ensure that sustainable fiscal policy is maintained in the medium to long term in Qatar. Fiscal policy remains sustainable, but given the large drop in oil prices, revenue-raising and expenditure-containing measures need to be considered to ensure intergenerational equity. Measures aimed at containing current spending, prioritizing capital expenditure, and raising nonhydrocarbon revenues would help bring fiscal policy back to consistency with intergenerational equity. Strengthening fiscal frameworks would help achieve the desirable fiscal policies.
April 2, 2015
United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision
Description: This paper discusses key findings of the Detailed Assessment of Observance of the Basel Core Principles for Effective Banking Supervision (BCP) on the United States. The U.S. federal banking agencies have improved considerably in effectiveness. These improvements are reflected in the high degree of compliance with BCP in this current assessment. Shortcomings have been observed, particularly in the treatment of concentration risk and large exposures, but they do not raise concerns overall about the authorities’ ability to undertake effective supervision. These shortcomings should, however, be addressed if the United States is to achieve the standards of supervisory effectiveness expected of one of the most systemically important financial systems in the world.
April 2, 2015
United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Insurance Core Principles
Description: This paper discusses key findings of the Detailed Assessment of Observance of the Insurance Core Principles on the United States. The assessment finds a reasonable level of observance of the Insurance Core Principles. There are many areas of strength, including at state level the powerful capacity for financial analysis with peer group review and challenge through the processes of the National Association of Insurance Commissioners. Lead state regulation is developing and a network of international supervisory colleges has been put in place. Key areas for development include the valuation standard of the state regulators, especially for life insurance, and group capital standards.
April 1, 2015
Burundi: Sixth Review Under the Extended Credit Facility Arrangement, and Request for Extension and Augmentation of Access
Description: This paper discusses Burundi’s Sixth Review Under the Extended Credit Facility (ECF) arrangement and Request for Extension and Augmentation of Access. The macroeconomic outlook is broadly favorable, driven by continued public investment and a gradual recovery in agriculture; however, external vulnerabilities persist owing to a protracted decline in coffee exports and high volatility of coffee prices. The IMF staff supports the completion of the sixth review under the ECF and the authorities’ requests for an augmentation of access and extension of the current ECF arrangement through March 2016, which will be instrumental to catalyze donor support needed to address Burundi’s protracted balance-of-payments problem.
Notes: Also Available in French
March 30, 2015
Malawi: Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement, Request for Waivers for Non-Observance of Performance Criteria, Extension of the Arrangement, Modification of Performance Criterion, and Rephasing of Disbursements
Description: This paper discusses Malawi’s Fifth and Sixth Reviews Under the Extended Credit Facility (ECF) Arrangement, Request for Waivers for Non-observance of Performance Criteria (PCs), Extension of the Arrangement, Modification of PCs, and Rephasing of Disbursements. Program implementation was uneven given external financing shortfalls with several PCs not being observed. Three out of seven PCs for the fifth review were not met, including the continuous PC on the contracting of nonconcessional external loans. The new authorities are firmly committed to the core policies and objectives of the original ECF-supported program. Program discussions focused on key policy actions to address these challenges and bring the program back on track.