Country Reports
2022
March 25, 2022
Sri Lanka: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
Description: COVID-19 severely hit the economy, causing a loss of tourism receipts and necessitating several strict lockdowns. Pre-pandemic tax cuts and the impact of COVID-19 led to fiscal deficits larger than 10 percent of GDP in 2020 and 2021 and a rapid increase in public debt to 119 percent of GDP in 2021. Sri Lanka’s access to international capital markets was lost in 2020, prompting a decline of international reserves to critically low levels and large-scale direct lending to the government by the Central Bank of Sri Lanka (CBSL). External debt repayments and a widening current account deficit have led to foreign exchange (FX) shortages, while the official exchange rate has been de facto fixed since April 2021. Inflation is on the rise, reaching double digits in December 2021, reflecting imported inflation, supply shocks, and a pickup in domestic demand amid loose monetary policy.
March 25, 2022
Costa Rica: First and Second Reviews Under the Extended Arrangement Under the Extended Fund Facility, Request for Extension of the Arrangement, and Rephasing of Purchases-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica
Description: On March 1, 2021, the IMF Executive Board approved a 36-month arrangement under the Extended Fund Facility (EFF) with access of SDR 1.23749 billion (335 percent of quota, equivalent to US$1.778 billion) to support the country’s response to the pandemic and its reform efforts toward strong, inclusive, and sustainable growth. The authorities’ proactive response to the COVID-19 crisis, combined with sustained export performance, have supported a robust recovery. The outlook remains subject to downside risks, amid tighter global financial conditions, higher commodity prices, and the threat of new COVID variants.
March 24, 2022
Kingdom of Lesotho: Technical Assistance Report-Government Finance Statistics
Description: In response to a request from the authorities and as part of the Data for Decisions (D4D)1 funded project under the submodule for Fiscal and Debt reporting, a government finance statistics (GFS) technical assistance (TA) mission was held remotely with the Lesotho Ministry of Finance (MOF) during April 5–16, 2021. Previous TA missions under the Enhanced Data Dissemination Initiative (EDDI2) over the period spanning from 2016 to 2020 assisted the MOF to improve GFS compilation and dissemination for the budgetary central government (BCG) and inspired action to broaden data coverage to include local governments and extrabudgetary units (EBUs) with the aim to compile and disseminate consolidated general government GFS. Preliminary local government GFS have now been compiled, and data collected for selected state-owned enterprises (SOEs) and parastatals, including non-market SOEs that can now contribute to preliminary general government GFS to be compiled.
March 22, 2022
Indonesia: 2022 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Indonesia
Description: As elsewhere, the COVID-19 pandemic has led to tragic loss of life and triggered a major economic downturn in Indonesia. The authorities have responded with a bold and comprehensive policy package that has successfully maintained economic and financial stability. With the recovery underway, they have begun to withdraw the exceptional support measures. Nevertheless, the pandemic has caused scarring and reinforced the need to tackle longstanding structural challenges.
March 21, 2022
Israel: 2022 Article IV Consultation-Press Release and Staff Report
Description: The Israeli economy has weathered the COVID-19 crisis exceptionally well, but risks are high. With substantial fiscal and monetary support, real GDP growth reached 8.1 percent in 2021, driven by consumption and high-tech exports. The rapid vaccination campaign boosted confidence. The outlook is positive but still subject to high uncertainty.
March 21, 2022
Samoa: Technical Assistance Report—Climate Macroeconomic Assessment Program
Description: Samoa is highly exposed to natural hazards such as tropical cyclones, earthquakes, tsunamis, droughts, and floods. These damage economic growth and impact debt sustainability adversely. Increasing frequency and intensity of coastal storms are likely to amplify damage to infrastructure and livelihoods. Slow-moving climate stresses such as sea level rise and increasing heat hazard are also likely to impact potential growth in the main economic sectors such as agriculture, fisheries, and tourism.
March 16, 2022
Grenada: Disaster Resilience Strategy
Description: Natural disasters and climate change are existential threats to Grenada, with annual losses from these events estimated at 1.7 percent of GDP. Grenada has proactively pursued resilience-building, with its Climate Change Policy and National Adaptation Plan providing detailed roadmaps for policymakers. However, the challenges are increasing, including from slow-moving effects owing to the rising sea level, even as implementation capacity and resource constraints remain significant impediments. The COVID-19 pandemic has amplified those challenges by increasing risks and tightening Grenada’s fiscal space.
March 16, 2022
Republic of Madagascar: First Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Republic of Madagascar
Description: Madagascar continues to be severely affected by the COVID-19 pandemic. After a contraction of GDP estimated at 7.1 percent in 2020, the economic recovery has been sluggish, partly reflecting a delayed reopening of the economy. Postponement of some external budget support, following delays in structural reforms, will open a fiscal financing gap in 2022.