Country Reports
2024
January 18, 2024
The Gambia: 2023 Article IV Consultation and Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
Description: The Gambia is consolidating its democratic and economic transformation. It recently organized peaceful and transparent presidential, parliamentary, and local elections. The previous 2020-23 ECF arrangement accompanied the country’s reforms and helped alleviate the repercussions of the COVID-19 pandemic and Russia’s war in Ukraine. The end of the electoral cycle offers a window of opportunity for the next two to three years to further strengthen economic reforms and promote inclusive growth.
January 17, 2024
Kenya: 2023 Article IV Consultation-Sixth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Augmentations of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criteria, Waiver of Applicability of Performance Criteria, and First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya
Description: The Kenyan economy remains resilient amid a confluence of global, regional, environmental, and domestic political risks. These factors, including costly and uncertain international bond market access for frontier market economies in an environment of “higher for longer” global interest rates, are adding to Kenya’s balance of payments and fiscal financing needs despite policy efforts to sustain domestic and external balances. The authorities’ EFF/ECF-supported program, approved in April 2021 and extended by 10 months in July 2023 to April 2025, continues to evolve to address the emerging challenges, including to restore market confidence while incorporating additional policy actions to reduce debt vulnerabilities, a key objective of the program. The program also endeavors to bolster Kenya’s medium-term prospects by enhancing fiscal risk management, strengthening external buffers, and improving the governance framework.
January 16, 2024
Cabo Verde: Third Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
Description: Cabo Verde has weathered the recent shocks well, and the authorities have been successful in maintaining macro-financial stability, supported by international partners. Despite a challenging global environment, Cabo Verde’s economy rebounded strongly in 2021 and 2022 and continues its strong macroeconomic performance in 2023.The near-term growth outlook is favorable despite some downside risks. Inflation is decelerating. The country is politically stable. However, Cabo Verde still faces substantial vulnerabilities. The public debt-to-GDP ratio though declining is still above pre-pandemic levels. Climate change poses a major threat, as Cabo Verde is one of the most water-scarce countries in the world.
January 16, 2024
Republic of Mozambique: Third Review Under the Three-Year Arrangement Under the Extended Credit Facility, Requests for Modification of the Monetary Policy Consultation Clause, Waiver of Nonobservance of Quantitative Performance Criterion, Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Mozambique
Description: The economy continues growing steadily. Inflation pressures have declined sharply reflecting lower food and fuel prices. A fiscal correction is ongoing following the fiscal slippages from implementation challenges related to the single salary scale adopted in 2022. The security situation in the north has improved and general elections are planned for October 2024. Mozambique is facing tight domestic financing conditions combined with an external funding squeeze.
January 12, 2024
Albania: 2023 Article IV Consultation-Press Release and Staff Report
Description: The Albanian economy has emerged as one of the stronger performers in the region. The rising role of tourism has boosted confidence in the country’s prospects, a factor partly reflected in the steady appreciation of the lek. While growth is moderating, it is expected to remain robust at around 3½ and 3¼ percent, respectively, in 2023 and 2024. Inflation is gradually declining though it remains above the central bank’s target amid tight labor markets. Medium-term prospects, however, are constrained by structural challenges, including shortfalls in the rule of law and emigration pressures.
January 12, 2024
Republic of Congo: Fourth Review Under the Three-Year Arrangement Under the Extended Credit Facility, Requests for Modification of Performance Criteria, Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; Debt Sustainability Analysis; Staff Supplement; and Statement by the Executive Director
Description: The third review of a three-year Extended Credit Facility (ECF) arrangement (SDR 324 million, 200 percent of quota) was concluded on July 19, 2023. The momentum in economic growth continues, while rising production costs push up inflation. In the first half of 2023, overperformance in oil and non-oil revenue, combined with tighter budget execution, improved the non-oil primary fiscal deficit by 0.6 percent of non-oil GDP compared to the Third Review (CR 23/271). However, higher-than-expected external debt service—due to contractual contingencies to oil prices—tightened the adjusted target for the non-oil basic primary balance, implying a miss of the target by 0.9 percent of non-oil GDP. Congo also accumulated less deposits at BEAC than initially targeted. Despite external arrears remaining below the de-minimis threshold, public debt is assessed as sustainable but “in distress” due to frequent accumulation of new external arrears and uncertainty about the size of domestic arrears.
January 11, 2024
Jordan: Request for an Extended Arrangement Under the Extended Fund Facility and Cancellation of the Current Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Jordan
Description: Jordan has weathered a series of shocks relatively well, owing to adept policy making and sizable international support. Despite a challenging global and regional environment, Jordan has maintained macro stability, its economy is growing, albeit at a moderate pace, and inflation is low. However, despite progress achieved, unemployment is still very high, public debt is elevated and above pre-pandemic levels, and structural challenges weigh on private sector development.
January 8, 2024
Suriname: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Extension of the Arrangement, Augmentation of Access, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Suriname
Description: Despite a very challenging socio-political environment, the authorities continue to prioritize fiscal discipline and macroeconomic stability in their policy actions. An agreement-in-principle at the technical level has been reached on the debt treatment with China that is in line with other creditors and consistent with debt sustainability objectives. The formal debt exchange with private external bondholders has been finalized in November with high participation rate.