Country Reports
2023
November 16, 2023
Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press Release and Staff Report
Description: Economic growth has been robust, supported by strong domestic investment and consumption. Monetary policy is focused on containing inflationary pressures, while fiscal policy has kept public debt in check. The authorities remain committed to maintaining their very strong policies and policy frameworks, to ensure economic, fiscal, and financial stability.
November 16, 2023
Republic of Korea: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Korea
Description: Korea faced challenges from inflation, growth slowdown, and financial stress in the wake of the pandemic. Growth started to slow in mid-2022 as global demand for electronics waned and domestic demand weakened but has begun to gradually recover in recent quarters. Headline inflation has declined from last year’s peak, though core inflation has remained more persistent. Pockets of financial vulnerability have emerged, but swift policy measures have helped to stabilize financial and housing markets. Despite having increased, systemic financial risks appear to remain manageable.
November 16, 2023
Benin: Technical Assistance Report-Public Investment Management Assessment–PIMA and C-PIMA
Description: This technical report discusses the results of the Public Investment Management Assessment (PIMA) of Benin, undertaken in March 2023 to update a previous assessment based on an October 2017 mission. The mission found out that public investment in Benin has significantly increased from its 2019 low and should help sustain progress in terms of physical access to infrastructure. The assessment highlighted progress since the late 2017 PIMA with respect to the institutional framework for public investment management, facilitated by the adoption of a comprehensive PIM legal framework. It also identified areas where effectiveness is still lagging, notably in terms of project appraisal and selection, maintenance and for PIMA institutions related to the execution of public investment. The report also includes the results of the climate module of the PIMA evaluation, which reflect that Benin’s long-lasting commitment in the fight against climate change, captured in a 2018 national law against climate change, are starting to feed into some public investment management practices. On the basis of this assessment, the report proposes seven high-priority recommendations that could greatly improve public investment management in the short to medium term.
November 11, 2023
Maldives: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives
Description: The Maldives is recovering after the historical 2020 fall in tourism, aided by a rapid COVID-19 vaccination program rollout. While the prompt and comprehensive policy approach in early 2020 was effective, a more prolonged pandemic and ambitious infrastructure projects are further weakening large pre-pandemic fiscal and external vulnerabilities.
November 11, 2023
Maldives: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives
Description: The Maldives’ economy is recovering rapidly from the pandemic, underpinned by a strong resumption in tourism on the back of the authorities’ rapid vaccine rollout and policy support measures. Fiscal and external vulnerabilities remain elevated due to rising subsidies, high capital spending, and an increased interest burden. The Maldives has a high risk of external debt distress and a high overall risk of debt distress. Inflation has risen but is relatively contained due to price subsidies. Risks to the outlook are tilted to the downside, including a possible sharp slowdown in key source markets for tourism, high commodity prices, and tighter global financial conditions. A resumption of tourist arrivals from China is an upside risk to growth.
November 9, 2023
Somalia: Technical Assistance Report-National Accounts Statistics Mission
Description: A technical assistance mission to the National Bureau of Statistics of Somalia (SNBS) supported work to conduct a comprehensive revisions exercise on estimates of Gross Domestic Product (GDP) by expenditure; rebase GDP from base year 2017 to 2022; and extend the GDP time series to 2022. It did so by processing and incorporating new data, most notably the 2022 Somalia Integrated Household Budget Survey (SIHBS), a key new source which is also being used to update consumer price index (CPI) weights. The SIHBS results underpin an upward revision to GDP levels, resulting from higher values of household consumption, particularly of nonfood items. These improvements to data and methods will improve the understanding of the Somalia economy, both for domestic policymaking and international surveillance.
November 7, 2023
Seychelles: Technical Assistance Report-Stress Testing the Central Bank Balance Sheet
Description: A Technical Assistance (TA) mission was conducted in Victoria, Seychelles, from July 17 to 27, 2023, to assist the authorities in stress testing the balance sheet of the Central Bank of Seychelles (CBS). The TA mission focused on: (i) reviewing the CBS financial reporting from an International Financial Reporting Standards 9 Financial Instruments point of view; (ii) stress-testing the CBS balance sheet for several deterministic scenarios, as well as for credit, interest rate, and exchange rate risks; (iii) evaluating the CBS operating expenses based on an international comparison, and (iv) helping the CBS to prepare the communication around a possible recapitalization. The technical assistance report provides an overview of the results emanating from these tasks and provides key recommendations on recapitalization, as well as on the implementation of measures to improve financial reporting and financial risk management. Moreover, the report provides a detailed summary of the technical components of Central Bank Operations Division of the IMF Monetary and Capital Markets Department’s central bank stress-testing model – which in conjunction with a three-day workshop conducted during the mission on running the model – provides guidance to authorities on institutionalizing this model to routinely conduct stress-testing of the CBS balance sheet.
November 6, 2023
Central African Republic: First Review Under the Extended Credit Facility, Requests for Waivers of Nonobservance of Performance Criteria, Modification of Quantitative Performance Criteria, Rephasing of Access, and Financing Assurance Review-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic
Description: Board approval of the new ECF-supported program helped avert a crisis in CAR. The new program immediately boosted investor confidence and markedly improved the government’s access to domestic financing. The program has also established a framework to implement much-needed fiscal and governance reforms, unlock IFI financing, safeguard public service delivery in social sectors. Yet, the overall environment has stayed fragile due to protracted security risks and a volatile political situation, which was recently heightened by a constitutional reform that removed presidential term limits. Further, the macroeconomic standing remains weak as CAR continues to climb out of the loss of budget support and severe disruptions in the local fuel market.
November 3, 2023
Peru: Technical Assistance Report-Central Bank Digital Currency (CBDC) Stakeholder Engagement
Description: The goal of the mission was to continue to support the BCRP in its effort to research the conditions for success for a CBDC, as well as the role of various stakeholders. The IMF has been providing Technical Assistance to BCRP on the topic of CBDC since 2021. The initial TA mission supported the central bank during the first phase of the project, called the Preparation phase, which involved clarifying the context, key questions, and potential approaches to study a CBDC. The second phase of the BCRP’s CBDC project, known as the Proof of Assumptions phase, started with the publication of a paper by the central bank, supported by the current mission. The white paper outlined the context, goals and challenges related to a potential CBDC in Peru. Consistent with recommendations from the first mission, the BCRP recognized the need to focus on an initial engagement with stakeholders, including representatives of the banking sector, payment service providers, and the Fintech and technology sector.
November 3, 2023
Slovak Republic: Technical Assistance Report-Implementing Public Expenditure Limits
Description: Multi-annual public expenditure limits (PEL) are the latest addition to Slovakia’s rule-based fiscal framework and provide an operational fiscal policy instrument to strengthen fiscal discipline. This report advises on enhancements to public financial management for the successful introduction of PEL. It outlines the steps to move towards a more strategic, medium-term approach to budgeting. It also advises on how to manage spending under the PEL, including through contingency margins; to integrate expenditure baselines and spending reviews in the budget process; and to tighten budget execution. Finally, it advises on institutional changes to facilitate the process.