Country Reports
2017
December 6, 2017
People’s Republic of China: Detailed Assessment Report on the Observance of Standards and Codes
Description: This paper discusses the key findings of the assessment of the current state of the implementation of the Basel Core Principles for Effective Banking Supervision in China. China’s legal framework sets clear responsibilities and objectives for banking supervision in China. Overall, China Banking Regulatory Commission’s (CBRC) legal mandate and responsibilities, supported by broad powers, enables CBRC to conduct banking supervision in an effective way, with a primary focus on safety and soundness. A comprehensive set of regulations and procedures have provided CBRC with the necessary tools to properly operationalize its mandate, while strong enforcement powers further support the effectiveness of supervisory actions. Cooperation and collaboration with local and foreign authorities are also in place.
December 1, 2017
Maldives: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives
Description: This 2017 Article IV Consultation highlights that Maldives’ economy grew by 3.9 percent in 2016 and continues to improve in 2017 on a recovery in tourism and a continued strength in construction. The fiscal deficit widened in 2016 driven by lower-than-expected revenue and large arrears clearance despite unchanged current spending. Public debt as a share of GDP rose nearly 11.5 percentage points from 2014–16. The outlook is for a strengthening recovery in the near term, with low inflation, loose financial conditions, but with significant downside risks from a fragile fiscal and external position. Growth is projected to recover in 2017 and stabilize over the medium term.
November 30, 2017
Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press Release and Staff Report
Description: This paper discusses Mexico’s Arrangement Under the Flexible Credit Line (FCL) and Cancellation of Current Arrangement. Mexico continues to face significant uncertainty regarding the pace and outcome of the negotiations on the North American Free Trade Agreement. The authorities are requesting a two-year precautionary FCL arrangement and the cancellation of the current arrangement, approved on May 27, 2016. They consider that, in an environment where external risks affecting Mexico remain elevated, an FCL arrangement in the requested amount will play a critical role in supporting their overall macroeconomic strategy, preserving investor confidence, and providing insurance against tail risks. The IMF staff supports the authorities’ request.
November 30, 2017
Rwanda: Request for Extensions of the Standby Credit Facility Arrangement and the Policy Support Instrument-Press Release and Staff Report
Description: This paper discusses Rwanda’s Request for Extensions of the Standby Credit Facility (SCF) Arrangement and the Policy Support Instrument. The SCF is aimed at complementing the authorities’ efforts to address growing external imbalances. Both near and medium term adjustment policies to position Rwanda’s external position on a sustainable basis are part of an overall strategy to support growth, support poverty reduction and improve the country’s resilience to future uncertainties in the global economy. Program performance is on track. All continuous and end-June 2017 quantitative assessment/performance criteria were met, as were almost all indicative targets. Most structural benchmarks have already been met or are in progress. The IMF staff supports the authorities’ request for the extensions through January 31, 2018.
November 22, 2017
Former Yugoslav Republic of Macedonia: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Former Yugoslav Republic of Macedonia
Description: This 2017 Article IV Consultation highlights slower growth in the former Yugoslav Republic of Macedonia following a solid economic recovery since the global financial crisis. Growth slowed to 2.4 percent in 2016 and contracted by 0.9 percent in the first half of 2017. Economic activity has been supported by private consumption and exports, while negative effects from prolonged political instability have restrained investment and slowed down corporate credit growth. Inflation has gradually picked up, after staying negative during the past few years. Public debt is projected to rise to 47 percent of GDP in 2017. Currently, the government is in the process of preparing the draft economic program.
November 21, 2017
Honduras: Fifth and Sixth Reviews Under the Stand-By Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Honduras
Description: This paper discusses Honduras’ Fifth and Sixth Reviews under the Stand-by Arrangement (SBA). All continuous performance criteria for the end of June 2017 were met. The indicative target on the National Electricity Company’s (ENEE) operating revenue-to-spending ratio was missed by a small margin owing to up-front fees paid to the loss-recovery concessionaire. On the structural front, notable reforms are the adoption of a fiscal responsibility law to anchor a sustainable medium-term fiscal position; the overhaul of the tax administration; and the reduction in the heavily overstaffed payroll of ENEE. The authorities have indicated that they will not purchase the amount available on completion of these reviews, in line with their intention to treat the SBA as precautionary.
November 21, 2017
Trinidad and Tobago: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Trinidad and Tobago
Description: This 2017 Article IV Consultation highlights a decline in the real GDP of Trinidad and Tobago of 6 percent in 2016, with a further decline of 3.25 percent projected by the IMF staff in 2017. The combined impact of weak growth and low energy sector revenues increased the overall fiscal deficit to 12.1 percent of GDP in fiscal year 2016, though it is expected to drop to 11.0 percent of GDP in fiscal year 2017. Meanwhile, the current account deteriorated by 14.5 percentage points to a deficit of 10.7 percent of GDP in 2016. The government has taken steps to adjust fiscal imbalances, through efforts to reform the energy tax regime, reduce fuel subsidies, and boost nonenergy revenues.
November 21, 2017
Trinidad and Tobago: Selected Issues
Description: This Selected Issues paper reviews the performance and reform plans for public bodies (PBs) in Trinidad and Tobago. PBs represent a source of fiscal risk to the government through the generation of financial losses, with current and capital transfers from the central government to PBs amounting to 3.5 percent of GDP in FY2015/16. Inappropriate pricing policy and weak governance are the most prevalent sources of fiscal risk. PBs must improve public service delivery and become profitable. Key policies should center on incentives for performance, stronger corporate governance, and better public oversight. Steadfast restructuring of PBs with losses must be implemented either through restructuring those that are nonviable or liquidating them to ensure efficiency and improved resource allocation.
November 20, 2017
Liberia: Seventh and Eighth Reviews Under the Extended Credit Facility Arrangement, and Request for Nonobservance of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Liberia
Description: This paper discusses Liberia’s Seventh and Eighth Reviews under the Extended Credit Facility Arrangement, and Request for Waiver of Nonobservance of Performance Criteria (PCs). Three of six structural benchmarks (SBs) for the seventh review and two of four SBs for the eighth review were met. The rest, except one, were met with a delay. Risks are concentrated in the near term. Based on the strength of the authorities’ policy commitments and corrective measures, the IMF staff supports the authorities’ request for waivers for nonobservance of PCs and supports completion of the seventh and eighth program reviews.
November 17, 2017
Sweden: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden
Description: This 2017 Article IV Consultation highlights Sweden’s continued strong economic growth. Real GDP is expected to rise by 3.1 percent in 2017, driven by both domestic demand and exports growing at a similar pace. Robust job creation of over 2 percent has lowered unemployment to 6.8 percent, or just 4.5 percent excluding full-time students. Housing price increases have moderated somewhat in 2017, to 7 percent year over year in September. Aided by large increases in new dwelling construction, signs of further market cooling have emerged in recent months. Household credit growth has also eased somewhat in 2017. Unexpectedly, strong government revenues in 2016 have carried forward into 2017, with the general government fiscal surplus projected at 1 percent of GDP.