Country Reports
2023
June 28, 2023
Seychelles: Requests for an Extended Arrangement under the Extended Fund Facility and Arrangement under the Resilience and Sustainability Facility and Cancellation of the Current Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Seychelles
Description: Under the current EFF, the authorities have made substantial progress in restoring macroeconomic stability and debt sustainability after being hit hard by the COVID-19 pandemic. Now, they would like to pivot to the deeper medium-term structural reforms needed to support structural balance of payments needs and promote sustainable and inclusive growth. To support this pivot, they have requested the cancellation of the current EFF and the approval of a new one. Concurrently, they have requested a program under the Resilience and Sustainability Facility (RSF) to help advance their climate agenda, including measures to enhance resilience to climate-related shocks.
June 28, 2023
Republic of Fiji: 2023 Article IV Consultation-Press Release; and Staff Report
Description: As a small island dependent on tourism, Fiji’s economy contracted sharply with the pandemic and then rebounded strongly in 2022, as tourism recovered with the reopening of international travel. Growth momentum is expected to continue in 2023, as tourist inflows approach pre-pandemic levels. The new government installed in December has committed to pursue economic reforms that promote inclusive growth and fiscal sustainability. Downside risks to the outlook stem from weaker growth in tourism-source countries, delayed recovery in hotel capacity, and exacerbated skilled labor shortages. Fiji remains vulnerable to external shocks related to natural disasters and climate change.
June 28, 2023
Jamaica: Technical Assistance Report-Climate Public Investment Management Assessment (C-PIMA)
Description: Jamaica is highly exposed to multiple natural hazards, including tropical cyclones, floods, and droughts. Jamaica ranks 47th out of 191 countries in the 2023 Inform Risk index.1 Jamaica suffers from damaging winds, rain, and storm surges, especially during the tropical cyclone season. Over the coming decades, Jamaica is expected to experience more heatwaves, more irregular rainfalls that bring heightened hazards of droughts or flooding, stronger tropical cyclones, and raising sea levels. Intensified climate hazards interact with socioeconomic vulnerability in Jamaica—since infrastructure, population and tourism activities are concentrated in the coastal areas—amplifying climate related costs to the country’s physical assets, population, and the broader economy.
June 27, 2023
Costa Rica: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, First Review Under the Resilience and Sustainability Arrangement, Request for Modification of Reform Measure Under the Resilience and Sustainability Facility, and Monetary Policy Consultation-Press Release; and Staff Report
Description: Recent developments. Growth has been resilient despite global headwinds and inflation is on a strong downward trend. The easing of external pressures has allowed the authorities to rebuild reserves, while the ongoing fiscal consolidation has strengthened debt sustainability and contributed to upgraded sovereign ratings.
June 27, 2023
Suriname: Second Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Rephasing and Reduction of Access, Waivers of nonobservance of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; Staff Supplement; Staff Statement; and Statement by the Executive Director for Suriname
Description: The program went off-track in mid-2022, due to the delayed completion of a prior action on parliamentary approval of the VAT law and, subsequently, to spending overruns which injected local currency liquidity into the system, fueling currency depreciation and inflation. The authorities have taken concerted efforts to restore fiscal discipline including through passage of a 2023 budget. The central bank has also taken measures to tighten monetary conditions. Progress has been made in restructuring both official and privately-held public debt.
June 26, 2023
United Arab Emirates: 2022 Article IV Consultation-Press Release; and Staff Report
Description: The 2022 Article IV Consultation highlights that United Arab Emirates (UAE) economic growth strengthened in 2022, benefitting from a rapid and effective coronavirus disease response, supportive fiscal measures, and the benefits of earlier social and business-friendly reforms. The economic outlook remains positive, supported by strong domestic activity. Overall, gross domestic product is projected to grow at 3.6 percent in 2023, with non-hydrocarbon growth of 3.8 percent driven by continued tourism activity and increased capital expenditure. Strong reform efforts continue under the UAE 2050 strategies. Advancement on Comprehensive Economic Partnership Agreements will boost trade and integration in global value chains and further attract Foreign Direct Investment. In addition, the benefits of artificial intelligence and digitalization and investments in enabling infrastructure will further support economic diversification, foster a smooth energy transition, and help address vulnerabilities from global decarbonization efforts. Long-term vulnerabilities from global decarbonization efforts are being addressed through commitments to climate initiatives and a balanced approach to energy transition.
June 26, 2023
Denmark: 2023 Article IV Consultation-Press Release; and Staff Report
Description: The Danish economy recovered strongly from the pandemic, which contributed to inflation pressures from higher energy and import prices. More recently, there are signs that economic activity is cooling, as inflation is lowering real incomes, financial conditions are tightening, and external demand is weakening, but labor markets remain relatively tight. Staff expect growth to slow to 1¼ percent in 2023. Risks to growth are broadly balanced, but upside risks dominate inflation. The financial system has remained stable, although house prices have fallen. The medium-term growth outlook remains modest, reflecting well-known structural issues, in particular demographic headwinds.
June 26, 2023
Haiti: Second Review Under the Staff-Monitored Program-Press Release; and Staff Report
Description: Haiti faces a challenging macroeconomic outlook amid a humanitarian crisis. The country has been hit hard by economic spillovers from Russia’s invasion of Ukraine, with food price inflation triggering a hunger crisis. This global shock has been compounded by a dire security situation, which has heightened the economy’s fragility, hampered activity, and generated supply-side bottlenecks which have further fueled inflation. Risks to the outlook are tilted to the downside.