Country Reports
2019
January 24, 2019
Argentina: Technical Assistance Report-Technical Assistance Mission on External Sector Statistics (November 14-25, 2016)
Description: At the request of the National Institute of Statistics and Censuses (INDEC), a technical-assistance mission on external-sector statistics (ESS) visited Buenos Aires on November 14–25, 2016. Currently, INDEC’s National Directorate for International Accounts (DNCI) compiles and disseminates ESS following the guidelines of the fifth edition of the Balance of Payments Manual. The mission reviewed the ESS methodology, data sources, and dissemination policy in order to help enhance its quality and to assist compilers in migrating the methodology to the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). The main data sources used to compile the current account and the capital account (excluding investment income, which is compiled along with the financial account and the IIP) are customs records, corporate surveys, the international-tourism survey, accounting information available to the public, administrative records, and information concerning the exchange balance disseminated by the Central Bank of Argentina (BCRA). The mission found data sources and compilation procedures to be sound. Although the mission identified improvements that could add to the quality of certain estimates, the balances of the current and capital accounts are expected to remain substantially unchanged.
January 24, 2019
Morocco: 2018 Request for an Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco
Description: Following the expiration of the third Precautionary and Liquidity Line (PLL) arrangement, in July 2018, the authorities have requested a new PLL arrangement. They did not draw on the last three arrangements and have made further progress in reducing domestic vulnerabilities in recent years, despite a sharp pick up in oil prices. In an external environment that remains subject to important downside risks, a successor arrangement will support the authorities’ policies to strengthen the economy’s resilience and promote higher and more inclusive growth.
January 24, 2019
Ukraine: Technical Assistance Report-Report on Residential Property Price Index Capacity Development Mission
Description: A technical assistance (TA) mission was conducted during June 18–22, 2018 to support the State Statistics Service of Ukraine (SSSU) in improving the residential property price indexes (RPPI) for Ukraine. This was the second of a series of SECO2 RPPI-funded TA missions to take place until mid-2019 that will assist in building staff capacity for further development of the RPPI. RPPIs have been identified as critical ingredients for financial stability policy analysis. The indexes are used by policy makers as an input into design of macroprudential policies, that is, those policies aim to reduce systemic risks arising from “excessive” financial procyclicality (such as asset bubbles). RPPIs are also used by policy makers to inform monetary policy and inflation targeting.
January 24, 2019
Kiribati: 2018 Article IV Consultation -Press Release; Staff Report; and Statement by the Executive Director for Kiribati
Description: Growth has been strong in recent years and some moderation is expected, with risks skewed to the downside. High fishing revenues improved the fiscal position, but generated pressure to increase spending. There has been progress on fiscal and structural reforms. Yet, public spending needs are large, driven by an infrastructure gap and climate adaptation costs, and the country remains at high risk of debt distress.
January 24, 2019
People's Republic of China-Hong Kong Special Administrative Region: 2018 Article IV Consultation-Press Release and Staff Report
Description: Hong Kong SAR’s economy benefitted from a strong cyclical upswing through the first half of 2018, supported by the continued global recovery, buoyant domestic sentiment, and the booming property market. However, near-term risks have significantly increased – including those from trade tensions, tighter global financial conditions, and capital outflows from emerging markets. Also, long-term challenges, including from aging, elevated inequality, and the persistent housing shortage, need to be tackled. Prudent macroeconomic policies and ample buffers are in place to help smoothen the transition and ensure continued stability.
January 24, 2019
Chad: Third Review Under the Extended Credit Facility Arrangement, Request for Waiver of Nonobservance of Performance Criterion and Financing Assurances Review-Press Release; Staff Report and Statement by the Executive Director for Chad
Description: The current ECF arrangement (access of 160 percent of quota or SDR 224.32 million) was approved on June 30, 2017 in the context of a very difficult and deteriorating social, economic, and financial situation. The crisis was precipitated by the oil price and security shocks that began in 2014, and the heavy burden of external commercial debt with Glencore. The restructuring of this debt in June 2018 paved the way for the completion of the second review in July 2018. Chad’s stability is key for the regional security situation given its regional peace-keeping efforts.
January 24, 2019
People’s Republic of China-Hong Kong Special Administrative Region: Selected Issues
Description: This Selected Issues paper discusses income inequality in Hong Kong Special Administrative Region (SAR). Income inequality in Hong Kong SAR remains high, despite declining recently. Redistributive policies implemented by the authorities have helped to lower income inequality. However, inequality is likely to rise in the medium-term due to aging and thus more needs to be done. A package of policies could lower the Gini index by 3–4 points by 2050 including: more progressive salaries tax; higher reliance on recurrent property taxes; and increased public expenditure on social welfare, health, housing, education and childcare. According to recent evidence in the literature, these policies could also boost growth by 0.2–0.5 percentage points per year. Public spending on social welfare could continue to be raised to boost redistribution and increase access of poorer households. Spending on education and childcare should be raised to help lower the market income inequality directly. The commissioned study aiming to determine the demand and supply for childcare services and map out the long-term service development programs, as well as the initiatives mentioned in the 2018 Policy Address, should help in this regard.
January 22, 2019
Burkina Faso: 2018 Article IV Consultation; First Review Under the Extended Credit Facility Arrangement; Request for Waiver for Nonobservance of a Performance Criterion, and Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso
Description: Burkina Faso faces large social and physical infrastructure gaps, a deteriorating security situation, and unease among the rapidly-expanding population about economic prospects. Growth has been robust, averaging more than 6 percent over the past two years. Activity has been supported by expansionary fiscal policy, including from a boost to capital spending in 2017. Revenue has not increased as expected and the wage bill has been rising.
January 22, 2019
Burkina Faso: Selected Issues
Description: This Selected Issues paper examines Burkina Faso’s banking system and traces its macro-financial linkages. The analysis builds upon the macro-financial linkages work conducted in the context of the Article IV consultation with the West African Economic and Monetary Union (WAEMU). Overall, the banking system remains profitable and well-capitalized, but its ability to support the real economy needs to be improved if the authorities are to reach their development goals. Moreover, financial inclusion remains low, and despite recent progress on basic access to the financial system, significant barriers to accessing credit remain; particularly for women, rural inhabitants, and the agricultural sector. The available data indicates that the banking system remains well-capitalized and profitable. Systemic risks remain broadly contained, and new banks have come into operation, but there is significant scope to improve the banking system’s ability to support the real economy and financial inclusion. Deteriorating security conditions could undermine banks’ ability to expand into underserved remote areas.
January 22, 2019
St. Lucia: Technical Assistance Report-Report on Supply and Use Tables Mission
Description: A technical assistance (TA) mission was undertaken by the Real Sector Statistics Advisor in the Caribbean Regional Technical Assistance Centre (CARTAC) to St. Lucia during September 17–28, 2018, to provide advice to the Central Statistics Office (CSO) on compiling supply and use tables (SUT) for 2016. The 2006 base year for the GDP estimates is outdated and does not reflect the current structure of the economy. In addition, there is scope to improve the input data and methodology used in producing the GDP estimates and to implement the relevant System of National Accounts 2008 (2008 SNA) recommendations.