Country Reports
2019
June 19, 2019
Liberia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Liberia
Description: Liberia remains a fragile, post-conflict country with weak capacity and limited physical and human capital accumulation. External assistance to Liberia is winding down from its peak in 2016. To address pressing needs, the government launched its Pro-Poor Agenda for Prosperity and Development (PAPD), focusing on physical and human capital accumulation. Policy uncertainty and slippages, however, imposed a significant toll on the economy over the past two years. Particularly, higher fiscal deficits and accommodative monetary policy have led to rapid depreciation of the Liberia dollar and increased inflation, eroding the purchasing power of the poor.
June 19, 2019
Angola: First Review of the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, and Modifications of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Angola
Description: A 36-month Extended Arrangement under the Extended Fund Facility (hereafter the “arrangement”) was approved last December, with access of SDR 2,673 million (361 percent of quota). Lower international oil prices would reduce oil revenues, widen the current account deficit, and stymie growth recovery. The authorities are implementing a proper policy response to the weakened outlook, through a conservative supplementary budget for 2019, alternative sources of cheaper financing, and progress toward a more flexible exchange rate regime.
June 19, 2019
Georgia: Fourth Review Under the Extended Fund Facility Arrangement and Request for Modifications of Quantitative Performance Criteria-Press Release; Staff Report; and a Statement by the Executive Director for Georgia
Description: Recent economic developments. Economic performance remained robust in 2018: growth reached 4.7 percent, supported by external demand; inflation stayed below the three percent target, the fiscal deficit remained in line with program commitments, and the current account improved. Tighter lending standards helped decelerate credit growth towards more sustainable levels. The banking sector remains well capitalized, liquid, and profitable. Dollarization remains elevated. In early 2019, growth conditions were favorable, with average inflation slightly above the target reflecting increased excises.
June 18, 2019
Guatemala: 2019 Article IV Consultation-Press Release and Staff Report
Description: Fundamentals remain strong and growth has revived after three years of subpar performance. Improved budgetary execution and monetary accommodation, broadly in line with past staff advice, are providing demand support as the economy navigates weaker terms of trade. Near-term growth is poised for a rebound on the back of fiscal impulse from the 2019 expansionary budget, exports recovery after last year’s slump, and construction-driven investment. Lack of progress on long-delayed business climate and public sector reforms, the Sustainable Development Goals (SDG) agenda, and financial inclusion, dampen medium-term prospects.
June 18, 2019
Republic of Mozambique: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique
Description: Mozambique’s economic situation had been improving until Tropical Cyclone Idai and Kenneth hit the country in March and April, respectively. Economic growth was recovering gradually and becoming broader based, and inflation reached low single digits. Economic activity is expected to decelerate sharply in 2019 due to the supply shock to productive capacity, but it should rebound to pre-cyclone levels by 2020. In April, the IMF Executive Board approved US$118 million in emergency assistance under the Rapid Credit Facility (RCF). The authorities are committed to macroeconomic stability while fostering inclusive growth and addressing governance challenges.
June 17, 2019
Ireland: Selected Issues
Description: This Selected Issues paper examines the past and present impact of personal income tax reform in Ireland. Personal income in Ireland is taxed under two distinct schemes. Changes in Ireland’s personal income taxation have been procyclical and created vulnerabilities to public finances. The reduction in personal income taxes during the boom has been broad based, albeit more for low-income taxpayers. With somewhat shrinking corporate profits during the crisis, personal income taxation was increased. The reformed income tax would reduce the vulnerability of public finances to interplay of corporate (CIT) revenues and reduce procyclicality. A robust, stable income tax system performs a stabilizing role over the business cycle, while the additional CIT revenues during booms could be saved as buffers to be used for smoothing downturns or to reduce the still high public debt. Post-2014, income taxes have been reduced again, fueling the recovery in domestic demand. The Income Tax could be further amended to enhance incentives to work, while safeguarding the progressivity of the system.
June 17, 2019
Ireland: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ireland
Description: The Irish economy continues to expand strongly, benefitting from higher net exports by multinational enterprises and robust domestic demand. Accelerating wage growth reflects tight labor market conditions and inflation has started to pick up. Crisis legacies have diminished but some vulnerabilities persist. The outlook remains broadly positive, provided Brexit proceeds in an orderly manner. However, the economy operates near full capacity and an accelerating cyclical momentum could re-ignite a boom-bust dynamic. A no-deal Brexit represents the key downside risk, while escalation in global protectionism and sudden changes in corporate tax planning of multinational enterprises in Ireland could adversely affect the economy and public finances.
June 14, 2019
New Zealand: Technical Assistance Report-Report on the Monetary and Financial Statistics Mission
Description: At the request of the Reserve Bank of New Zealand (RBNZ), and with the support of the IMF’s Asia & Pacific Department (APD), a monetary and financial statistics (MFS) technical assistance (TA) mission visited Wellington, New Zealand during October 1–12, 2018.1 The mission’s main objectives were to assist the RBNZ to: (i) complete the central bank Standardized Report Form (SRF 1SR); (ii) review the source data and bridge table used to produce Other Depository Corporations (ODCs) Standardized Report Form (SRF 2SR);(iii) assist the RBNZ to produce additional historical data in the SRFs 1SR and 2SR for the past five years; (iv) review the available source data for the compilation the Other Financial Corporations (OFCs) Standardized Report Form (SRF 4SR); (v) prepare metadata for the central bank, ODC, and OFC surveys; and (vi) agree on a timetable for RBNZ’s SRF-reporting of its MFS.
June 13, 2019
Czech Republic: 2019 Article IV Consultation-Press Release and Staff Report
Description: The economy is doing well, but supply constraints are biting. Growth has slowed as the economy has reached capacity limits, with very low unemployment even as participation has increased. Recent wage increases have been very strong, ahead of productivity. So far, inflation remains contained. The economy continues to run a current account surplus, even though domestic absorption has picked up. But the housing market is pressured, especially in metropolitan areas. Policies should balance risks of overheating against a faster-than-expected slowdown and aim to boost potential growth.