Country Reports

June 10, 2014

Greece: Fifth Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Waiver of Nonobservance of Performance Criterion and Rephasing of Access

Description: This paper discusses Greece’s Fifth Review Under the Extended Arrangement Under the Extended Fund Facility (EFF), and Request for Waiver of Nonobservance of Performance Criterion and Rephasing of Access. Greece has gone from having the weakest to the strongest cyclically adjusted fiscal position within the euro area in just four years. But more fiscal adjustment is needed to restore debt sustainability. Structural reforms are progressing, although unevenly. The redoubling of efforts to liberalize products and service markets are much welcomed. On the basis of reforms undertaken in the context of this review, and the government’s policy commitments going forward, the IMF staff supports the completion of the fifth review.

June 10, 2014

Haiti: Poverty Reduction Strategy Paper

Description: This paper focuses on Haiti’s Poverty Reduction Strategy Paper and 2014–2016 Three-Year Investment Program. The Haiti Strategic Development Plan presents the new framework for the planning, programming, and management of Haitian development, the vision and the strategic guidelines for the country’s development, and the four major work areas to be implemented to ensure the recovery and development of Haiti. The Three-Year Investment Program, 2014–2016 (PTI 2014–2016) concerns implementation of the Strategic Plan for Development of Haiti and more specifically implementation of the government’s priorities for the period.

June 10, 2014

Algeria: Financial System Stability Assessment

Description: This paper discusses key findings of the Financial System Stability Assessment on Algeria. The global crisis has had virtually no impact on Algeria’s financial system, which remains stable overall but thoroughly underdeveloped. Pervasive exchange controls, widespread public ownership, and an abundance of domestic funding have protected banks from external shocks. Financial sector reforms have been pushed to the backburner by the emergence of global financial and regional political turmoil, with privatization of banks halted and consumer lending suspended. The authorities have also made progress in a number of areas implementing the recommendations of the 2007 Financial Sector Assessment Program update.

Notes: Also available in French

June 9, 2014

Jordan: Staff Report for the 2014 Article IV Consultation, Third and Fourth Reviews Under the Stand-By Arrangement, Request for Waivers of Nonobservance of Performance Criterion and Applicability of Performance Criteria

Description: This paper focuses on Jordan’s 2014 Article IV Consultation, Third and Fourth Reviews Under the Stand-By Arrangement (SBA), Request for Waivers of Nonobservance of Performance Criterion (PC) and Applicability of PCs. The program is broadly on track and, looking forward, will focus on deep tax reform. All end-2013 targets were met. The central government is expected to meet its end-March 2014 target, but the combined public sector deficit will be missed because of temporary shortfalls in gas delivery from Egypt. International reserves have continued to over-perform through March. The IMF staff supports the completion of the third and fourth reviews.

June 9, 2014

Panama: Staff Report for the 2014 Article IV Consultation

Description: This 2014 Article IV Consultation highlights that Panama’s economic performance remains buoyant. Real GDP growth averaged about 8.5 percent over the past decade, the highest in Latin America, supported by an ambitious public investment program, and accompanied by strong reduction in unemployment, poverty, and income inequality. After exceeding 10 percent in 2011–2012, growth slowed to 8.4 percent in 2013 reflecting mainly a decline in Colon Free Zone activity and in Canal traffic. Growth is expected to remain strong over the medium term. Inflation is moderating, owing to the deceleration of international food and oil prices. The baseline outlook is favorable, with moderate risks.

June 9, 2014

Jordan: Selected Issues

Description: This Selected Issues paper investigates the macroeconomic impact of the Syria crisis on Jordan. It is indicated that the crisis: (1) had an overall negative impact on measured output growth—although anecdotal evidence suggests possibly a positive impact on output in the informal sector; (2) contributed to inflationary pressures, particularly on rents; and (3) strained labor markets, mostly in the informal sector as refugees compete with locals for jobs. Although the crisis has put a strain on the external trade balance, the overall impact on the current account is not clear.

June 9, 2014

New Zealand: Staff Report for the 2014 Article IV Consultation

Description: This 2014 Article IV Consultation highlights that the economic expansion in New Zealand is becoming increasingly embedded and broad based, with growth exceeding 3 percent in the second half of 2013. The drivers include supportive financial conditions, record high export commodity prices, resurgent construction activity related to the Canterbury post-earthquake rebuild and general housing shortages, and a substantial increase in net immigration. Growth is expected to increase to about 3½ percent in 2014 and moderate to a trend rate of 2½ percent over the medium term. Strong construction activity is expected to remain an important driver for near-term growth.

June 6, 2014

Hungary: Selected Issues

Description: This Selected Issues paper assesses recent trends in Hungary’s potential growth and medium-term growth prospects. It analyzes to what extent the recent moderation of GDP growth reflects structural factors. The paper lays out some stylized facts about the Hungarian economy that could explain the growth slowdown observed in recent years. It provides estimates of potential growth using various methods, identifies the sources of the growth slowdown, and offers forecasts of potential growth over the medium-term under the baseline scenario. A model-based approach is also employed to estimate potential growth over the medium term under a reform scenario.

June 6, 2014

Hungary: Staff Report for the 2014 Article IV Consultation

Description: This 2014 Article IV Consultation highlights that Hungary’s economy has emerged from the 2012 recession and posted 1.1 percent growth in 2013, mainly driven by government investment and consumption, and also net exports. Private demand—although strengthening on the back of accommodative monetary conditions and improved market confidence—remained weak, and credit to the retail and corporate sectors continued to contract, albeit at a slowing pace. Hungary’s medium-term growth prospects remain subdued, as private consumption is still hampered by the ongoing repair of households’ balance sheets; the weak business environment continues to weigh on private investment.

June 3, 2014

Benin: Sixth Review Under the Extended Credit Facility Arrangement and Request for a Waiver of Nonobservance of a Performance Criterion

Description: This paper discusses Benin’s Sixth Review Under the Extended Credit Facility (ECF) Arrangement and Request for a Waiver of Nonobservance of a Performance Criterion (PC). The last review of Benin’s ECF arrangement confirms the improved growth performance during the program. Real GDP growth is expected to reach about 5½ percent in 2014 for the third consecutive year. The government is tackling emerging issues in several areas to reduce risks to the good macroeconomic performance. The IMF staff recommends completion of the review and supports the authorities’ request for a waiver of the PCs on nonconcessional borrowing.

Notes: Full text is also available in French