Country Reports
2023
December 21, 2023
Somalia: Poverty Reduction Strategy Paper-Joint Staff Advisory Note
Description: This Joint Staff Advisory Note (JSAN) reviews the mid-term review report(MTR) of Somalia’s Ninth National Development Plan (NDP9).1 NDP9 is a nationallyowned and comprehensive strategy for poverty reduction and inclusive growth. It covers2020–2024 and is organized around the four pillars: Inclusive Politics, Security and theRule of Law, Economic Development, and Social Development. NDP9 was submitted tothe IMF and World Bank on October 15, 2019, to fulfill the Enhanced Heavily IndebtedPoor Countries (HIPC) Initiative’s poverty reduction strategy requirement. The firstAnnual Progress Report (APR) was received by the World Bank and the IMF in June 2022,and a JSAN was prepared and submitted to the Boards in July 2023. The MTR tracksprogress of the first 30 months of NDP9 implementation and serves as APR for 2021 and2022. The MTR also identifies the gaps, challenges, and lessons learned, and makespractical recommendations for improvement in the implementation of NDP9’s finalphase from 2023 to 2024.
December 21, 2023
Republic of Palau: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Palau
Description: Palau has emerged from the pandemic with significant output loss, elevated public debt and historically high inflation. Adverse demographic trends, high dependence on tourism and external support, and vulnerability to climate change risks raise vulnerabilities. The authorities successfully enacted a fiscal responsibility framework and modernized the tax system. A new Compact Review Agreement (CRA-23), with better financial terms, is awaiting approval by US Congress.
December 21, 2023
Central African Economic and Monetary Community: Common Policies of Member Countries, and Common Policies in Support of Member Countries Reform Programs-Press Release; Staff Report; and Statement by the Executive Director
Description: The CEMAC’s recovery gained momentum in 2022, supported by higher hydrocarbon prices. The external position strengthened, with a rapid foreign reserve build-up, though still below adequate levels. The recent weakening in external buffers will require more forceful action to tighten liquidity conditions, greater compliance of member countries with foreign exchange regulations and stronger fiscal discipline. Underlying non-oil fiscal positions, however, also deteriorated, stressing the need for accelerating structural reforms, addressing recent fiscal slippages, and bringing polices back in line with Fund-supported program objectives and staff advice. This will be critical to strengthen the region’s resilience to hydrocarbon prices volatility, financial instability, entrenched inflation, tighter financial conditions, food insecurity, domestic conflicts and insecurity, and climate-related events.
December 20, 2023
Democratic Republic of the Congo: Fifth Review Under the Extended Credit Facility Arrangement, Requests for Modification of Quantitative Performance Criteria, Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo
Description: Despite the continuing impact of the armed conflict in the East on the security and humanitarian situation, and approaching elections scheduled on December 20, 2023, the authorities remain committed to preserve program’s objectives, including by limiting macroeconomic slippages and continuing implementation of the economic reform program.
December 20, 2023
Rwanda: Technical Assistance Report-Expanding the Nowcasting Toolbox at the National Bank of Rwanda
Description: In response to a request from the National Bank of Rwanda and in accordance with the AFE workplan, a virtual technical assistance (TA) mission on Forecasting and Policy Analysis System (FPAS) took place during December 12–21, 2022. The objectives of the mission were twofold: (i) to further strengthen the nowcasting framework for GDP and CPI inflation, and (ii) to initiate the work on developing a simple, efficient, and robust process for forecasting the external variables for the Quarterly Projection Model (QPM). The new CPI nowcasting system now includes the monthly forecasts of ten subgroups of the core CPI inflation, as well as two subgroups of food inflation, enabling the assessment of the key drivers of inflation and the nature of inflation shocks. Similarly, the new GDP nowcasting system covers production in different sectors and significantly improves the forecasting results.
December 20, 2023
Barbados: 2023 Article IV Consultation and Second Reviews Under the Arrangement Under the Extended Fund Facility and Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Barbados
Description: The authorities are implementing their updated Economic Recovery and Transformation Plan (BERT 2022) and their ambitious climate policy agenda. Barbados has weathered the COVID-19 pandemic and other recent shocks well, amid continued macroeconomic stability. The economy has recovered strongly, driven by a rebound in tourism. The authorities are placing renewed focus on structural reforms with the aim of achieving inclusive and sustainable growth and increasing resilience to climate change while maintaining debt sustainability and social cohesion. Ample international reserves support the exchange rate peg.
December 20, 2023
Zambia: Second Review Under the Arrangement Under the Extended Credit Facility, Requests for a Waiver of Nonobservance of a Quantitative Performance Criterion, Modifications of the Monetary Policy Consultation Clause and of Quantitative Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Zambia
Description: Despite considerable challenges, the Zambian economy is showing resilience driven by non-mining and non-agricultural growth. The government continues to work with its external creditors to restructure its debt in line with program parameters. External and domestic conditions have put pressure on the external balance and the exchange rate, raising inflation. Fiscal consolidation will remain a pivotal focus to restore debt sustainability. Concurrently, economic policies will be directed toward increasing and safeguarding essential social spending, preserving financial stability, and intensifying structural and governance reforms to unlock Zambia's growth potential.
December 20, 2023
Somalia: Staff Report for the Sixth Review Under the Extended Credit Facility (ECF) Arrangement and Request for a Three-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Somalia
Description: Economic activity is recovering as rains resumed in 2023, and the authorities continue to advance their efforts to rebuild the economy and institutions. However, despite significant progress achieved, Somalia remains fragile, facing challenges from climate shocks, an unsettled security situation as the government advances against Al-Shabab amid the withdrawal of the African Union Transition Mission, and lack of political consensus among all Federal Member States that affects advancement of the federalism agenda.