Country Reports
2013
May 16, 2013
Sri Lanka: 2013 Article IV Consultation and Proposal for Post-Program Monitoring
Description: The paper discusses the economic developments and policies in Sri Lanka in recent years. Substantial adjustments in energy prices and operational and financial reforms have helped to improve the performance of state owned enterprises (SOEs) and have reduced the burden on the budget and the banking system. Despite challenging global and domestic market conditions, overall soundness of the financial sector has improved with higher levels of capital, liquidity, and healthy earnings. The Sri Lankan economy is expected to return to a high growth trajectory, though conditional on recovery in external demand.
May 14, 2013
Former Yugoslav Republic of Macedonia: Technical Assistance Evaluation Report
Description: This paper discusses findings of the Technical Assistance Evaluation Report for the former Yugoslav Republic of Macedonia. Overall, the authorities indicated that technical assistance (TA) and training had been very useful in improving its statistical systems and statistics. The approach to provide subject-specific TA following the Data Module Report on the Observance of Standards and Codes (ROSC) was effective as the ROSC assessment was helpful in setting the context for future TA. The authorities emphasized the usefulness of training. They noted that despite the slow pace of implementation of TA missions’ recommendations in some cases, training had contributed to their understanding of international standards.
May 14, 2013
Chad: Staff Report for the 2012 Article IV Consultation
Description: This 2012 Article IV Consultation focuses on Chad’s economic developments and policies. Economic performance in 2011–2012 has been marked by an oncoming stream of several large industrial projects. The IMF report highlights that growth slowed in 2011 and inflation accelerated at year’s end, while the balance of payments strengthened. The nonoil primary deficit declined in 2011, and the overall fiscal balance swung from a deficit to a small surplus leaving room for private-sector credit expansion. A new approach, developed in collaboration with international partners (including the Food and Agriculture Organisation and World Food Programme), focuses on improving water management, warehouse capacity, and information systems.
May 14, 2013
New Zealand: 2013 Article IV Consultation
Description: New Zealand’s economy continued to grow at a moderate rate, in part reflecting the effects of the recent drought and inflation. The macroeconomic policy has been framed to absorb adverse shocks with flexible exchange rates to serve as buffer. The planned pace of deficit reduction is balanced between sustaining aggregate demand and limiting public debt growth. Recent stress tests also showed that major banks could withstand a sizable shock to output, terms of trade, rising unemployment, and a fall in property prices.
May 13, 2013
Republic of Estonia: 2013 Article IV Consultation
Description: Estonia has succeeded in reducing its macroeconomic imbalances and vulnerabilities, but faces the challenge of preserving its hard-earned fiscal and financial stability and enhancing long-term growth prospects. In this regard, adopting a fully fledged medium-term fiscal framework can help assess policy trade-offs and avoid procyclical policies. Financial sector stability can be safeguarded by strengthening macroprudential policies. Deeper Nordic-Baltic cross-border prudential arrangements and the EU banking union can enhance financial stability. Estonia needs to safeguard its external competitiveness, address skill mismatches, and accelerate human capital accumulation.
May 10, 2013
Nigeria: 2012 Article IV Consultation
Description: The overarching policy challenge facing Nigeria is to reduce widespread poverty and unemployment. Macroeconomic performance was broadly positive, underpinned by buoyant international oil prices and prudent fiscal and monetary policies. The fiscal targets and the medium-term fiscal consolidation plan are consistent with supporting macroeconomic stability and creating fiscal space for much needed additional investment and social spending. Non-oil revenues need to be mobilized by moving quickly to improve tax administration in line with technical assistance (TA) recommendations. Planned structural reforms can substantially boost prospects for inclusive growth.
May 10, 2013
Netherlands: 2013 Article IV Consultation
Description: The Netherlands is an AAA euro area (EA) economy with significant private sector imbalances. The main policy challenge is to restore growth and manage downside risks while allowing for an orderly adjustment of private sector balance sheets. A focus on medium-term objectives will cement policy credibility and mitigate uncertainty. The financial system must reduce its dependence on wholesale financing, and banks reliant on public sector support need to wind down this support. Reforms in the labor markets and human capital will be important in safeguarding the economy’s growth potential.
May 8, 2013
Morocco: Selected Issues
Description: Morocco has made substantial progress in increasing inclusive growth over the past decade, but additional efforts in terms of growth-enhancing structural reforms are needed. Preserving economic efficiency and fostering growth while strengthening inclusiveness remains a priority. This paper describes the fuel subsidy system in Morocco, introduces an organizing framework to illustrate the trade-offs involved in meeting various economic and social objectives when considering subsidy reform, and highlights some lessons from the international experience in implementing subsidy reforms that may be pertinent to the case of Morocco.
May 8, 2013
Uruguay: 2012 Article IV Consultation
Description: Uruguay’s near-term outlook is positive, but with risks and policy challenges. Medium-term challenges include bolstering the economy’s resilience to shocks and fostering productivity growth. Inflation is a priority and monetary policy cannot fight inflation alone; concerted efforts on other fronts are also necessary. Near-term fiscal policy could better support monetary policy. A long-term policy challenge is to bolster growth prospects and reduce output volatility. The political cycle should be propitious for continued sound policies and progress with reforms.
May 8, 2013
Uruguay: Selected Issues
Description: Uruguay’s inflation and inflation expectations exceed the inflation target, and the gap has been widening in recent years. To help bring it to the mid-point of the target, Banco Central del Uruguay (BCU) needs to maintain a tightening bias in addition to strengthening its communication. This paper examined the factors behind the composition of FDI flows to Uruguay and suggested that strong institutions and macroeconomic stability have helped attract FDI to the secondary and tertiary sectors. Flexibility of the labor market, financial deepening, and the quality of infrastructure can further this improvement.