Country Reports
2023
September 29, 2023
Republic of Armenia: Technical Assistance Report-Residential Property Price Index Statistics Mission
Description: A technical assistance (TA) mission was conducted from July 10 to July 21, 2023, to assist the authorities in Armenia with the development of a Residential Property Price Index (RPPI). Both the Statistical Committee of the Republic of Armenia (ArmStat) and the Central Bank of Armenia (CBA) fully participated during the mission. The mission was conducted under the auspices of the Data for Decisions (D4D) Trust Fund. The following tasks were completed: (i) examined the quality of the register data from the Cadastre Committee of the Republic of Armenia (CCRA), (ii) contributed to capacity building by providing practical training on RPPI compilation, (iii) examined the institutional arrangements for the development of the RPPI, (iv) assisted with the calculation of experimental indices for apartments following international best practice, (v) advised on the dissemination strategy for the RPPI, and (vi) agreed on a workplan for the further development of the RPPI.
September 27, 2023
Vietnam: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam
Description: After a strong post-pandemic recovery, the economy faces strong headwinds. A weaker external environment led to a sizable decline in exports. In addition, amidst high private debt and rising global interest rates, a liquidity crunch distressed highly leveraged sectors (in particular, real estate), the corporate bond came to a halt, and nonperforming loans rose. As a result, economic activity decelerated sharply in the first half of 2023. While the government managed to stabilize the markets, risks remain elevated.
September 22, 2023
Honduras: 2023 Article IV Consultation and Requests for an Arrangement Under the Extended Fund Facility and an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Honduras
Description: The Honduran economy has shown remarkable resilience to various domestic and external shocks over 2020-22, and real GDP is now around 6 percent above pre-pandemic levels supported by the authorities’ prudent policies. That said, Honduras faces long-standing social and structural challenges that hinder its development potential and stability. Under the previous Fund-supported program that expired in January 2022, Honduras succeeded in enhancing the quality of fiscal policy and implementing institutional reforms. The current authorities are committed to maintaining prudent macroeconomic policies and advancing structural reforms while fostering inclusive growth by creating space for critical social spending and infrastructure investment. In this context, the authorities have requested a new Fund arrangement to anchor their economic and institutional reform agenda.
September 21, 2023
Ecuador: Financial System Stability Assessment
Description: Ecuador’s financial system is dominated by banks and credit cooperatives. Its exposure to macrofinancial risks is shaped by its fully dollarized economy and its position as an oil exporter. The institutional framework for financial sector oversight is complex, uncoordinated, and prone to political intervention, which results in sub-optimal policies.
September 21, 2023
Botswana: Financial System Stability Assessment
Description: Botswana’s financial sector, which exhibits high integration between banks and non-bank financial institutions, withstood the pandemic well. The economic recovery continues to be strong, but inflation remains high with risks tilted to the upside. Overall, the authorities have made notable progress in strengthening their financial supervisory and regulatory frameworks since the 2007 FSAP.
September 21, 2023
Angola: First Post-Financing Assessment Discussions-Press Release
Description: After achieving macroeconomic stability amid a difficult environment in 2020, the recovery that began in 2021 continued through 2022, aided by high oil prices. President João Lourenço second term – achieved last year – is focused on boosting diversification and non-oil growth. However, Angola faces significant challenges in 2023, including a worsening outlook for oil prices, lower oil production, a highly uncertain external environment, and the need to unwind last year’s large fiscal loosening. The latter will be aided by the full completion of the fuel subsidy reform announced by the government on June 1, 2023. Angola’s capacity to repay the Fund is adequate though subject to high risks. In the event of an adverse scenario involving a prolonged oil price shock, repayment indicators would weaken but remain adequate.
September 18, 2023
Kuwait: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Benefiting from high oil prices, Kuwait’s economic recovery continues, and the fiscal and external balances have strengthened. Inflation is contained and external buffers are increasing. However, structural challenges persist. The dominance of oil in Kuwait’s economy coupled with global decarbonization trends underscore the urgency for economic diversification and structural transformation, and the pursuit of fiscal reforms to reinforce sustainability.
September 18, 2023
Kingdom of Bahrain: Selected Issues
Description: Interest in CBDC is growing globally including in Bahrain, which has made considerable strides in the areas of payment service digitalization and fintech. While a CBDC could bring about various benefits, it may also imply risks. The analysis presented in this paper aims to assess some of these benefits and risks for Bahrain. It will quantify the potential impact of introducing a CBDC on the financial system and monetary policy transmission using a model specifically calibrated and estimated for Bahrain. It finds that a CBDC's perceived utility by the population is key for wide adoption. While high adoption and remuneration can help enhance monetary policy transmission, they may imply a drag on banking system profitability. A careful and analytically informed design could enhance adoption while limiting risks to financial stability.
September 15, 2023
Kiribati: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Due to supportive fiscal policies, the economy recovered strongly in 2021, with real GDP growing 7.9 percent. However, a domestic outbreak of COVID-19 and the subsequent lockdown restrictions imposed in the first half of 2022 along with a severe drought dampened economic activities. With the reopening of borders in August 2022, GDP growth is expected to increase from an estimated 1.2 percent in 2022 to 2.5 percent in 2023. Inflation has picked up recently due to the recovery in domestic demand, supply shortages, and elevated commodity prices and freight costs. Risks to the outlook are mainly on the downside.