Climate Change

Climate-related risks are macro-critical considerations for Burkina Faso. This Climate Policy Diagnostic identifies policy reforms that reduce balance of payment risks, boost fiscal resilience, and generate positive climate outcomes. A robust package of fiscal policies is key to accelerating energy access and transition, while a holistic approach to reform is needed to promote water and food security. Efficient disaster risk management and financing will save lives and build economic resilience, and sustainable forestry, land-use, and waste management can be supported by good fiscal policies. In addition, strong climate governance helps streamline implementation and reduce costs toward building long-term resilience.

Facing policy and reforms setbacks in 2024, the new authorities introduced strong measures to steer the IMF-supported program back on track and complete the 4th ECF review in July 2025. President Mahama has repeatedly committed to fully implementing the Fund-supported program, an essential anchor to secure macroeconomic stabilization, address Ghana’s long-standing vulnerabilities, and bolster confidence and spur inclusive growth. While macroeconomic stabilization is taking root, Ghana still faces significant infrastructure and social gaps alongside emerging security threats.

This Report on the Observance of Standards and Codes—Data Module (Data ROSC) updates assessments conducted in 2002 and 2008 and a multi sector mission conducted in 2013. The updated assessment is based on the 2025 pilot version of the IMF’s Data Quality Assessment Framework (DQAF) and covers the national accounts, consumer and producer price indexes, government finance, public sector debt, monetary and financial, balance of payments, and international investment position statistics. Statistics Mauritius is responsible for national accounts, prices and government finance statistics—the latter based on data provided by the Ministry of Finance (MOF). The Bank of Mauritius (BOM) is responsible for monetary and financial, balance of payments, and international investment position statistics. MOF is responsible for public sector debt statistics.

The middle class can play a pivotal role as a growth driver in achieving Indonesia’s Golden Vision of becoming a high-income country by 2045. However, it remains narrow, at under 20 percent of the total population. It is also highly vulnerable, given a waning purchasing power, and unfavorable labor market dynamics. In contrast with the steady progress of the bottom half of the income distribution, the middle-class share has declined since 2019, driven, inter alia, by labor market shifts toward informality, falling real incomes, pandemic scarring. Reversing this trajectory requires broad-based structural reforms focused on revitalizing private-sector led growth, including investment to create formal sector jobs, aligning education with labor market needs and develop skills to raise economic sophistication, and enhancing productivity and resilience. Reforms that enhance the ease of doing business, such as reducing regulatory barriers and uncertainty and improving governance, can help facilitate convergence to high-income status and benefit the middle class.

This paper documents that households with higher marginal propensities to consume (MPCs) tend to consume goods with more flexible prices. Consequently, they face more cyclical and volatile inflation and experience higher inflation following an expansionary monetary policy shock. We embed this MPC-price stickiness relationship into a tractable multi-sector Two-Agent New Keynesian (TANK) model and analytically demonstrate that it dampens the effectiveness of monetary policy, reducing its efficacy by about 15% relative to a benchmark model with homogeneous consumption baskets. Introducing heterogeneous baskets also generates an inherently inefficient flexible-price equilibrium, which gives rise to a novel trade-off between stabilization and redistribution. The optimal monetary policy therefore differs qualitatively from the standard TANK policy prescription.

Sri Lanka was hit by catastrophic Cyclone Ditwah on November 28, claiming more than 600 lives as of December 6 and affecting millions more. Severe flooding and landslides displaced over 100,000 people and caused extensive destruction of houses, roads, bridges, rail lines, buildings including schools and hospitals, and agricultural land nationwide. The natural disaster creates urgent humanitarian and reconstruction needs, leading to acute balance-of-payments (BOP) pressures. The cyclone hit as Sri Lanka is emerging from a deep economic crisis and the IMF-supported reform program under the Extended Fund Facility (EFF) begins to bear fruit.