Country Reports
2024
July 24, 2024
Niger: Fourth and Fifth Reviews under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Extension and Rephasing of Arrangement, and First Review under the Resilience and Sustainability Facility Arrangement, and Request for Extension and Rephasing of the Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Niger
Description: This paper presents Niger’s the Fourth and Fifth Reviews under the Extended Credit Facility Arrangement, Requests for Waivers of nonobservance of Performance Criteria, and Extension and Rephasing of Arrangement, and First Review under the Resilience and Sustainability Facility Arrangement, and Request for Extension and Rephasing of the Arrangement. Political instability and sanctions following the military takeover of July 2023 have severely and persistently affected economic and social conditions. Growth is expected to rebound briskly in 2024 to 10.6 percent due to the start of oil exports and ensuing spillover effects across the economy, as well as increased production in the agricultural sector, and the lifting of sanctions. Program implementation was broadly on track at end-June 2023 but was subsequently disrupted by the political crisis, which led to the accumulation of external and domestic debt service arrears. Fostering private sector development, supported by a stable financial system and financial inclusion, is vital for resilient and inclusive growth. Progress in implementing reforms under the RSF-supported program is welcomed. Stepped up implementation of the measures under the program is essential to build resilience to climate change and lay the foundations to unlock additional finance for climate-related investments.
July 24, 2024
Republic of Equatorial Guinea: Staff-Monitored Program-Press Release; and Staff Report
Description: A decade of steady decline in hydrocarbon production has put Equatorial Guinea's fiscal and external accounts under strain and brought the need for economic diversification to the fore. An Extended Fund Facility (EFF) arrangement (approved in 2019) expired in December 2022 without the completion of a single review.
July 23, 2024
Italy: Selected Issues
Description: This Selected Issues paper focuses on the paradox of Italy’s low fertility and low female labor force participation. Within-household allocation of housework tends to be relatively specialized in Italy, and with more limited burden-sharing in households with children. Social and cultural norms are frequently cited as one of the main reasons for Italy’s large time-use gender gaps. With ingrained norms, changing behaviors might be seen as very challenging. Yet Italy’s work-family outcomes have undergone significant shifts within a relatively short time span, most likely in response to large structural changes in the nature of employment contracts and the macroeconomic environment. In Italy, both fertility and female labor force participation lag behind peer countries. The number of births has fallen by a third over the last fifteen years, while female labor force participation remains very low. This uncommon combination points to the need to improve the compatibility of work and family life. Moreover, a large divide exists between Northern and Southern regions, with much lower female labor force participation but a similar fertility rate in the South, suggesting the presence of structural impediments, such as labor market rigidities and scarcity of childcare facilities.
July 23, 2024
Italy: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy
Description: The Article IV Consultation discusses that Italy’s economy has recovered well from the coronavirus disease and energy price shocks. Employment rose alongside real activity. Financial conditions have eased somewhat but remain tight. Growth is forecast to average around ¾ percent in 2024–2026 as continued ramp up in investment under the EU-financed National Recovery and Resilience Plan (NRRP) broadly offsets the drop in tax-credit financed residential investment. Frontloading adjustment would moderate risks from high public debt and make room for productivity-enhancing spending, aging costs, and absorbing potential shocks. In order to raise productivity, full and timely NRRP execution, with a follow up plan of critical public infrastructure investments, education reform, and improving the business climate are needed. Deeper capital markets would facilitate private investment while industrial policy should be used selectively to correct market failures. Improving the compatibility of work and family life is needed to raise the birth rate and the share of working women.
July 22, 2024
Republic of Mozambique: Poverty Reduction and Growth Strategy
Description: This paper presents a report on Poverty Reduction and Growth Strategy in the Republic of Mozambique. The vision and mission of the National Development Strategy 2025–2044 have been revised to reflect the collective aspiration and values that guide national development. While the vision remains centered on building a middle-income society where equity, security and well-being of the population are guaranteed, sustainability and competitiveness are a priority, the mission has been refined to promote human, economic and environmental development through integrated and results-oriented policies and actions. The revision of the National Development Strategy is a shared commitment to the country's future. By implementing this revised Strategy, Mozambique strengthens its capacity to face the challenges of the present and build a prosperous and sustainable future for all its citizens. Commitment is working together, with determination and vision, to achieve the objectives and fulfil the shared vision of progress and prosperity for all.
July 22, 2024
St. Vincent and the Grenadines: 2024 Article IV Consultation-Press Release and Staff Report
Description: The 2024 Article IV Consultation with St. Vincent and the Grenadines discusses that the economy rebounded strongly in 2022–23 from the pandemic and 2021 volcanic eruptions, returning to pre-pandemic output levels. Growth is projected at 4.9 percent in 2024, supported by continued growth in tourism and strong investment on infrastructure, particularly the port project. Inflation is projected to ease to 2.5 percent by end-2024, on account of lower imported inflation. Fiscal policy should focus on building buffers and supporting resilience and inclusive growth while safeguarding public debt sustainability. Sustained efforts with structural reforms are imperative to build climate resilience and address structural bottlenecks to investment, employment, and productivity. The ongoing investments in key infrastructure such as ports, roads, airports, and water supply, along with efforts with digitalization and improving investment climate, are crucial for alleviating supply-side bottlenecks and enhancing competitiveness. The financial system remains sound, but efforts should continue to reduce balance sheet vulnerabilities and strengthen regulatory and supervisory frameworks. Capital and liquidity buffers are ample, with no apparent impacts of the compounded shocks on asset quality.
July 22, 2024
Cameroon: Sixth Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements, First Review under the Resilience and Sustainability Facility Arrangement, and Requests for Waivers of Applicability of Performance Criteria, Nonobservance of Performance Criteria, and Modification of Performance Criteria and a Reform Measure
Description: This paper highlights Cameroon’s Sixth Reviews Under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) Arrangements, First Review Under the Resilience and Sustainability Facility (RSF) Arrangement, and Requests for Waivers of Applicability of Performance Criteria (PC), Nonobservance of Performance Criteria, and Modification of Performance Criteria and a Reform Measure. The authorities continue to make progress on Cameroon’s economic reform agenda. Going forward, the authorities should accelerate the reform agenda in public financial management, foster structural transformation, and advance climate change adaptation and mitigation efforts. The authorities have made commendable progress under the RSF, which is helping Cameroon integrate climate considerations into its institutional and regulatory frameworks and enhance its capacity to adapt and mitigate the effects of climate change. It is essential to maintain the reform momentum to further strengthen the institutional framework for climate policies, build resilience to climate shocks, and catalyze new investments from donors and the private sector.
July 19, 2024
Panama: Financial Sector Assessment Program - Technical Note on Financial Safety Net, Resolution, and Crisis Management
Description: This paper presents a technical note on financial safety net, resolution, and crisis management in Panama. Key institutional pillars of a financial safety net have not been established in Panama. An explicit industry-funded deposit insurance system should be established as a key element of an effective financial sector safety net in Panama. Superintendency of Banks of Panama (SBP) is the resolution authority for banks in Panama; the SBP relies on strong prudential supervision to avoid bank failures and remove weak institutions. The current approach to bank resolution has not changed since the 2012 Financial Sector Assessment Program and recent technical assistance missions. The legal framework underpinning SBP corrective actions, its overall powers and approach to handling bank insolvency has not changed since passage of the Banking Law in 2008. Panamanian authorities have undertaken a review of the current resolution framework and have determined there is need for improvement. The authorities should build upon current domestic and regional efforts, and develop their internal, interagency, and cross-border coordination and communication mechanisms for bank resolution and crisis management.
July 19, 2024
Panama: Financial Sector Assessment Program - Detailed Assessment of Observance and Basel Core Principles for Effective Banking Supervision
Description: This paper discusses Panama’s Basel Core Principles for Effective Banking Supervision report. The Superintendency of Banks of Panama (SBP) has made significant progress in updating its regulatory and supervisory framework. The liquidity regulations are generally comprehensive; however, the Liquidity Coverage Ratio is calculated and reported on a Level 1 basis and not L2 or group-wide. Off-site analysis occurs on a frequent basis using a comprehensive suite of indicators and data points. The SBP has implemented a framework for credit concentration risk and large exposure limits, but the framework does not apply to all material sources of concentration risk. Regulations issued by the SBP set out a comprehensive set of requirements for a bank’s Board and senior management to be responsible for preparing financial statements that adhere to international accounting standards. Banks must identify and appropriately manage the market risks they face, and the Board of Directors has primary responsibility for establishing policies and procedures to identify these risks.