Country Reports
2013
November 14, 2013
Singapore: Report on the Observance of Standards and Codes
Description: This paper discusses findings of the Report on Observance of Standards and Codes on Singapore. The Monetary Authority of Singapore (MAS) shows a very high level of compliance with the Basel Core Principles and demonstrates a strong commitment by MAS to their implementation. As a large financial center, MAS is well aware of the risks posed by a financial system that is significantly larger than the economy of Singapore, and comprised primarily of branches of foreign institutions operating in non-Singapore dollars. MAS has also set a high standard for approving foreign entrants, applying the same prudential framework to foreign branches as to its own locally incorporated banks.
November 14, 2013
Singapore: Financial System Stability Assessment
Description: This paper discusses key findings of the Financial System Stability Assessment on Singapore. The Singapore financial system is highly developed, and well regulated and supervised. Singapore’s current regulation and supervision are among the best globally. The Monetary Authority of Singapore (MAS) oversees the entire financial system, and has the analytical and operational capabilities to do so effectively. Singapore is exposed to a broad array of domestic and global risks, especially in light of its interconnectedness with other financial centers. Stress tests suggest that these risks are manageable. This reflects the decisive macroprudential actions taken by MAS to address the threat of a bubble in the housing sector.
November 14, 2013
Singapore: Staff Report for the 2013 Article IV Consultation
Description: This 2013 Article IV Consultation highlights that since the robust recovery from the global financial crisis, Singapore’s growth momentum has eased and become more erratic. Growth decelerated to 1¼ percent in 2012 before picking up sharply in the first half of 2013. This reflects shifts in G3 (U.S., Europe, and Japan) demand and global risk appetite. At the same time, the current account surplus narrowed sharply to a still-high 18½ percent of GDP in 2012. The near-term outlook is for GDP to grow by 3½ percent in 2013-2014, supported by stronger demand from major advanced economies, despite some softening in regional economies.
November 14, 2013
Singapore: Selected Issues
Description: This Selected Issues Paper discusses some observations on Singapore’s monetary policy framework. Singapore’s monetary policy uses the nominal effective exchange rate (NEER) as the instrument in a basket-band-crawl framework. The paper finds that under some conditions an exchange rate-based monetary policy may not be detrimental to external competitiveness. A key parameter is the weight of imports in the consumer basket or production function. Tightening monetary policy through a nominal appreciation helps to dampen imported cost pressures. In addition, nominal appreciation can reduce domestic sources of inflation by lowering demand for local factors of production.
November 13, 2013
Portugal: Eighth and Ninth Reviews Under the Extended Arrangement and Request for Waivers of Applicability of End-September Performance Criteria
Description: This paper discusses Portugal’s Eighth and Ninth Reviews Under the Extended Arrangement and Request for Waivers of Applicability of end-September Performance Criteria (PC). Program implementation has remained broadly on track, in spite of a political crisis and significant legal challenges. The medium term outlook remains broadly unchanged, with growth gradually increasing to near its underlying potential of 2 percent by 2017. The contribution from the net foreign balance is now projected to be some 0.2 percentage point higher over the medium term. The IMF Staff supports the authorities’ request for completion of the combined eighth and ninth reviews and for waivers of applicability of the end-September PCs.
November 11, 2013
Thailand: 2013 Article IV Consultation
Description: This 2013 Article IV Consultation highlights that in 2012, Thailand’s economy rebounded strongly from the devastating floods, with real GDP growing by 6.5 percent. Private consumption rose 6.7 percent, reflecting pent-up demand and government measures, including the rice pledging scheme, where the government was committed to buying rice from farmers at a set price above the prevailing market price, and the first-car buyer scheme. On the back of reconstruction spending, private investment grew by 14.4 percent. With growth driven by domestic demand, the current account surplus is expected to reach a small deficit of 0.2 percent of GDP in 2014.
November 6, 2013
Central African Economic and Monetary Community (CEMAC): 2013 Staff Report on Common Policies for Member Countries
Description: This paper focuses on common policies for member countries of Central African Economic and Monetary Community (CEMAC). It highlights that the fiscal stance should be more cautious in some countries where policy buffers are insufficient to withstand shocks. The recent easing of monetary policy has been appropriate given the positive inflation outlook. Reserves coverage remains adequate and the real effective exchange rate is broadly in line with fundamentals but the issue of only partial repatriation of foreign exchange reserves by some member states needs be resolved. The fiscal surveillance framework should be revised to limit pro-cyclicality and better ensure long-term fiscal sustainability of oil-rich countries.
Notes: Also available in French
November 1, 2013
Sudan: Interim Poverty Reduction Strategy Paper-Joint Staff Advisory Note
Description: This Joint Staff Advisory Note focuses on the Interim Poverty Reduction Strategy Paper (I-PRSP) for Sudan. I-PRSP provides a useful stock taking of the socioeconomic situation in Sudan and offers a good basis for the design and monitoring of growth and poverty reduction policies. It is the first comprehensive policy document that assesses the challenges of and opportunities for poverty reduction. This strategy lays out a clear policy approach for the Government of Sudan to accelerate poverty reduction and provides a foundation for a roadmap to a full PRSP, but timelines and concrete next steps need to be urgently defined.
November 1, 2013
Sudan: Interim Poverty Reduction Strategy Paper
Description: This paper focuses on Sudan’s Interim Poverty Reduction Strategy Paper (I-PRPS). I-PRSP will support existing planning and budgeting instruments, including the 3-Year Salvation Economic Program (SEP) 2012–2014 and the 5-Year Development Plan (2012–2016), by strengthening the prioritization of actions and targeting poverty. The 3-Year SEP is an emergency plan to deal with the adjustment to new political and economic realities following the decision of the South to secede. I-PRSP will also help to fine tune the preparation and implementation of the SEP and a new 5-year Plan, and provide a foundation for the full PRSP.
November 1, 2013
Sudan: 2013 Article IV Consultation
Description: This 2013 Article IV Consultation highlights that Sudan’s economic performance in 2012 was unfavorable despite the introduction in June 2012 of a package of reforms. Non-oil real GDP growth slowed to 4.6 percent, inflation rose to 44.4 percent by the end of the year, and the gap between the official and curb market exchange rates remained at about 20 percent by end-December. The outlook for 2013 and the medium term are unfavorable. Non-oil real GDP growth is projected to slow further to 2.3 percent in 2013, and to remain below potential at about 3 percent over the medium term.