Country Reports
2013
April 2, 2013
Haiti: 2012 Article IV Consultation and Fifth Review Under the Extended Credit Facility
Description: Significant progress has been made in Haiti to safeguard macroeconomic stability after the January 2010 earthquake. However, the pace of the reconstruction has been slow and the business environment remains unattractive. Further development and strengthening social safety nets are essential. The monetary policy stance is appropriate and continuing commitment to exchange rate flexibility is appreciated. Improving the business environment is important to raise productivity, enhance competitiveness, and achieve higher and more inclusive growth.
April 1, 2013
Republic of Mozambique: Technical Assistance Report on Follow-up on Reforms in Public Financial Management
Description: The report assesses the implementation of SISTAFE (Public Sector Financial Management System) and respective action plan and discusses with the Mozambican authorities the effectiveness of the ongoing public financial management reforms.
March 29, 2013
Hungary: 2013 Article IV Consultation and Third Post Program Monitoring Discussions—Staff Report; Informational Annex; Public Information Notice; and Statement by the Executive Director
Description: This paper presents 2013 Article IV Consultation and Third Post Program Monitoring discussions on Hungry. While the output gap remains sizable, inflation expectations are not well anchored, and after seven consecutive policy rate cuts a pause seems prudent. Further monetary policy easing can be supported by stronger macroeconomic policies. Some efforts have been made to improve labor participation, but potential growth remains far too low for a country that should converge faster to EU-average incomes. The IMF report suggests that maintaining market confidence and reviving growth are the most pressing priorities for which decisive action to improve policies is needed.
March 29, 2013
Hungary: Selected Issues Paper
Description: Non-performing loans (NPLs) were found to respond to macroeconomic conditions, such as GDP growth, unemployment, and inflation; there are also strong feedback effects from the banking system to the real economy. This suggests that the high NPLs that many CESEE countries currently face adversely affect the pace of economic recovery. The note also evaluates different policy options to achieve permanent fiscal consolidation in Hungary. A fiscal consolidation based on a reduction in government transfers can stimulate labor participation, and a resulting increase in the returns to capital can increase investment and output in the long term.
March 28, 2013
Republic of Equatorial Guinea: Statistical Appendix
Description: In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
March 28, 2013
Panama: 2012 Article IV Consultation
Description: Panama’s per capita GDP has doubled, driven by a steady rise in public and private investment underpinned by a stable macroeconomic environment and prudent policies. Easy credit and fiscal conditions should continue to support public and private consumption. Further fiscal restraint through better tax administration and expenditure management and enhanced buffers would help cope with adverse spillovers. There is progress in implementing financial sector assessment program (FSAP) recommendations, though there is a need to upgrade financial sector supervision. Improvements in competitiveness and recent education reforms should help sustain growth over the medium term.
March 28, 2013
Panama: Selected Issues
Description: Panama’s extensive trade and financial linkages make it vulnerable to adverse external shocks, and this would have a sizable impact on Panama’s real activity. In the absence of monetary policy, macroprudential policy tools could usefully complement microprudential tools. A macroprudential supervisory body must possess the ability or power to collect and analyze firm-, market-, and global-level data to detect risks before they develop into full-blown crises. This study analyzes Panama’s tax structure, performance, and administration in order to identify priority areas for further strengthening
March 28, 2013
Republic of Lithuania: Selected Issues
Description: This Selected Issues paper discusses Lithuania’s efforts towards a sustainable and inclusive consolidation. Lithuania has implemented fiscal measures amounting to 17 percent of GDP during 2009–2012, about half of which were frontloaded in 2009. The report shows that Lithuania’s tax system, in comparison with other European Union member countries, is skewed toward labor and consumption taxes and plays a more limited role in income redistribution, especially in the upper-income brackets. It is highlighted that the country’s fiscal adjustment since 2009 has relied mainly on expenditure measures.
March 28, 2013
Republic of Equatorial Guinea: 2012 Article IV Consultation: Staff Report, Informational Annex, Public Information Notice, Statement by the Executive Director, Observations by the Government
Description: This 2012 Article IV Consultation highlights Equatorial Guinea’s economic developments and policies. The IMF report focuses on setting priorities that include strengthening fiscal institutions, developing public services, and enhancing governance to push the economic growth. The hydrocarbon sector has continued to be the main driver of the economy, accounting for about three-quarters of estimated GDP. It suggests that a commitment to regular publication and international quality standards would stimulate long-delayed improvements. The prospect of falling hydrocarbon revenues adds urgency to the case for a medium-term fiscal framework.
Notes: Also Available in Spanish
March 28, 2013
Republic of Lithuania: 2013 Article IV Consultation: Staff Report, Information Annex, Public Information Notice, Statement by the Executive Director
Description: This 2013 Article IV Consultation IMF staff report focuses on measures that are being undertaken to rebalance macroeconomic growth in Lithuania. The IMF report discusses the requirement of fiscal consolidation to fully rebuild fiscal space. It highlights the important role played by the financial sector in enabling sound credit expansion to support economic growth. Reducing obstacles to the resolution of nonperforming loans could help ease constraints on credit supply. The current account deficit is projected to remain relatively contained over the medium term, reaching about 2 percent of GDP, and financed mostly by foreign direct investment.