Country Reports
2023
January 23, 2023
Uganda: Second and Third Review under the Extended Credit Facility Arrangement; and Requests for a Waiver of Nonobservance of Performance Criterion and Rephasing of Access; Press Release; and Staff Report
Description: The outlook has become more challenging in recent months. While COVID-19 infections declined significantly, an outbreak of Ebola has raised new public health concerns. Moreover, the economic outlook has been negatively affected by the spillovers from the war in Ukraine and the tightening of global financial conditions. The authorities have reacted to the shocks in an appropriate manner, including through support to vulnerable households, and monetary policy tightening to contain inflation.
January 23, 2023
Philippines: Technical Assistance Report-Property Price Index Mission
Description: This technical assistance (TA) mission was conducted remotely between May 16 and June 17, 2022 to assist the Bangko Sentral Ng Pilipinas (BSP) with their property price statistics. The mission assisted Bangko Sentral Ng Pilipinas (BSP) with the final preparations for the introduction of the updated Residential Real Estate Price Index (RREPI) and the new Commercial Property Price Index (CPPI). In addition, the mission made recommendations for the medium and longer-term development of property price statistics.
January 23, 2023
Finland: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
Description: The economy recovered swiftly from the pandemic, but Russia’s war in Ukraine has worsened the outlook given Finland’s exposures to the fallout through trade and increase in energy prices, while high inflation and rising interest rates are weighing on household purchasing power. Long-standing structural challenges—from adverse demographics and low productivity growth—remain. Tighter financial conditions will test the resilience of Finland’s large financial system: banks are well-capitalized, but vulnerable to liquidity shocks and exposed to credit risks from other Nordics and high household debt.
January 23, 2023
Finland: Financial System Stability Assessment
Description: Finland has further improved the regulation and supervision of its financial sector since the 2016 FSAP, in part driven by European legislation and institutions. The size of the banking sector increased significantly in 2018 with the redomicilation of Nordea. Finland weathered the COVID-19 pandemic well relative to other economies, with fiscal support and interventions from the authorities. However, Finland is now navigating a weaker economic outlook given the war in Ukraine and ensuing energy crisis, despite limited direct financial exposures to Russia.
January 20, 2023
Chile: 2022 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Chile
Description: After an impressive recovery from the COVID-19 pandemic, the Chilean economy is undergoing a necessary transition towards sustainable growth amid a challenging external environment. Policy implementation remains very strong, geared towards correcting macroeconomic imbalances that built up during the pandemic while protecting the most vulnerable and advancing structural reforms, consistent with past Fund Advice (Annex I). On August 29, the IMF Executive Board approved a two-year Flexible Credit Line (FCL) arrangement for Chile in the amount of SDR 13.954 billion (800 percent of quota) to augment precautionary buffers and provide substantial insurance against adverse scenarios.
January 20, 2023
Czech Republic: 2022 Article IV Consultation-Press Release; and Staff Report
Description: Czechia's nascent recovery from the pandemic has been hindered by Russia’s war in Ukraine. Gas shortages are unlikely this winter but further increases in energy prices are a key risk. Inflation, which is well above target, and the rise in the cost of living are causing significant social pressure. The labor market remains tight and risks from a heated property market persist. Growth is projected to slow in 2022 and 2023 but to recover in 2024. Risks are tilted to the downside for activity and to the upside for inflation.
January 19, 2023
Chile: Technical Assistance Report-An Evaluation of Improved Tax Options
Description: At the request of the Chilean Minister of Finance, a team from the IMF Fiscal Affairs Department (FAD) conducted a capacity development mission in Santiago to evaluate options to improve green taxes in Chile, as part of a general tax reform presented to Congress in July 2022. The mission reviewed existing carbon taxes in the country, including revenue performance, coverage, and selected design issues. It also discussed changes to green taxes that will take effect in 2023, as well as new mitigation tools introduced in the Framework Law on Climate Change. The mission presented the authorities with four different carbon pricing reform scenarios that would bring Chile closer to or in line with its Nationally Determined Contribution (NDC) for 2030, and the legally binding net-zero pledge for 2050. The mission also stated that additional measures under all proposed scenarios, such as improved energy efficiency policies, introduction of feebates schemes and faster adoption of low and zero emission sources for transport, power, and industry, would further contribute to achieve climate goals. The mission used the Climate Policy Assessment Tool (CPAT) to perform the analysis. The tool was subsequently transferred to the authorities through a four-day hands-on capacity development workshop, which was attended by officials from the Ministries of Finance, Energy, Environment, and Transportation.
January 19, 2023
Spain: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Spain
Description: Two years after the pandemic, the Spanish economy is facing new headwinds from Russia’s invasion of Ukraine. Activity has been resilient so far, supported by a strong rebound in tourism and other services and timely policy support measures. However, elevated global energy and food prices, lower trading partners’ demand, deteriorating consumer and business confidence, and rising interest rates have slowed the recovery of output. Growth is projected to moderate to 1.1 percent in 2023. Risks to the outlook include tighter-than-expected financial conditions, weaker global demand, and further increases in European energy prices.