Country Reports
2023
June 6, 2023
South Africa: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for South Africa
Description: South Africa’s strong economic recovery from the COVID-19 pandemic is petering out. Growth moderated from 4.9 percent in 2021 to 2.0 percent in 2022 as the country was buffeted by Russia’s war in Ukraine, global monetary policy tightening, severe floods, and an unprecedented domestic energy crisis. Inflation rose above the target band though inflation expectations remained anchored. The current account moved back into a deficit after a temporary commodity-price driven surplus.
June 6, 2023
Vietnam: Technical Assistance Report-Taxpayer Compliance Risk Management – Tourism Compliance Improvement Plan
Description: This is a summary report concerning an in-country capacity development (CD) activity by Mr. Andy Ditchfield and Mr. Steve Howlin (IMF Fiscal Affairs Department (FAD) Short Term Experts (STX)) to the General Department of Taxation (GDT) of Vietnam during the period February 14 to 22, 2023. The purpose of this CD was to consolidate and build on the compliance risk management (CRM) remote training delivered in September and November 2022 by further practically applying CRM principles to the tourism sector to finalize a tourism sector compliance improvement plan (CIP). This sectoral CIP is a pilot that will give GDT the experience and confidence to extend contemporary CRM practices to other sectors and other specific compliance risks.
June 6, 2023
Rwanda: First Reviews Under the Policy Coordination Instrument and the Arrangement Under the Resilience and Sustainability Facility, Request for the Modification of End-June 2023 Quantitative Targets, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
Description: Recent developments. Rwanda’s economy continued with fast-paced post-pandemic growth in 2022, but macroeconomic imbalances have emerged. Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction activity. Rising food prices and strong domestic demand fueled by high credit growth partly contributed to a persistent inflation which stood at 19.3 percent in March. Robust import demand coupled with high commodity prices and tightening global financing conditions have weakened Rwanda’s external position. The uncertain external environment and the reduced prospects for external concessional financing are compounding the challenges from the legacy of the pandemic. The authorities are committed to implementing frontloaded fiscal policy adjustment, while the National Bank of Rwanda stands ready to take further actions to anchor inflation expectations. The outlook is subject to high uncertainty, mainly stemming from deepening geopolitical fragmentation, volatility in global energy and fertilizer prices, a steeper-than-projected decline in trading partners growth, or a funding squeeze.
June 5, 2023
Cyprus: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Growth is projected to slow from 5.6 percent last year to 2½ percent this year. Recovery in tourism and an influx of foreign companies is set to continue, but elevated inflation and tighter financial conditions will weaken domestic demand. Price pressures—stemming from high energy prices in 2022—are expected to moderate but will persist for core inflation. Growth is projected to pick up over the medium-term, underpinned by investments and reforms in the Recovery and Resilience Plan (RRP).
June 2, 2023
Benin: Technical Assistance Report-Governance Diagnostic
Description: At the request of the authorities of the Republic of Benin (“Benin”), a team consisting of multiple IMF departments (FAD, LEG and MCM) conducted a governance diagnostic mission from June 7 to September 27, 2022. In keeping with the IMF’s 2018 Framework for Enhanced Engagement on Governance, the diagnostic focused on weaknesses in governance and vulnerabilities to corruption in areas deemed to be macro-critical, including: (i) contract execution and protection of property rights; (ii) the legal and institutional framework for anti-corruption efforts; (iii) Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT); (iv) financial sector supervision; and (v) public finance governance (tax policy, tax and customs administration, public financial management).
June 1, 2023
Malaysia: 2023 Article IV Consultation-Press Release and Staff Report
Description: Malaysia registered a strong economic recovery in 2022, backed by its well diversified economy, sound policy frameworks, and commodity exporter status. While monetary policy started a gradual post-pandemic normalization, record costly spending on fuel subsidies broadly kept inflationary pressures suppressed in 2022. Meanwhile, the new national unity government has signaled its commitment to the reform priorities outlined in the Twelfth Malaysia Plan (12MP) and the 2023 Budget to propel the economy toward net-zero greenhouse gas emissions and high-income status.
June 1, 2023
Republic of Poland: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Following a strong rebound from the pandemic, the Polish economy in 2022 faced energy and food price shocks, which exacerbated inflationary pressures and slowed economic growth. With Russia’s war in Ukraine, the authorities seek to increase defense expenditures and energy security.