Country Reports
2023
October 6, 2023
Brunei Darussalam: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brunei Darussalam
Description: Context and Recent Developments. Brunei’s high vaccination rates have allowed for the removal of COVID-19 restrictions and reopening of borders; however, reduced oil and gas (O&G) production have undermined the recovery. The financial sector remains liquid and well-capitalized. High fuel prices helped strengthen the fiscal and external positions in 2022. Inflation hit a historical high but has recently declined. The 2023 Article IV consultation took place in the context of a volatile O&G market, and a difficult external environment. Key policy challenges include the narrowing fiscal space, the need to shield the economy against O&G price and output volatility, global decarbonization pressures, and ensuring inter-generational equity. The government is committed to diversifying towards a low-carbon economy.
October 4, 2023
Mongolia: 2023 Article IV Consultation-Press Release; and Staff Report
Description: Mongolia’s economic conditions stabilized by 2023H2, helped by China’s reopening. The economy was in a challenging position in 2022 with widening external and internal imbalances due to multiple global shocks, policy excesses and governance lapses. However, greater exchange rate (ER) flexibility; the government’s strenuous efforts to facilitate exports; an influx of new private external financing, and some moderation of global shocks helped lift economic activity, moderate inflation, and stabilize the external position by end-2022. Effective public debt management by the government mitigated rollover risks. A supplementary budget for 2023 introduced large and permanent expansions in wages, benefits, and pensions.
October 3, 2023
Maldives: Technical Assistance Report-Financial Soundness Indicators Mission
Description: The mission assisted the staff of the Maldives Monetary Authority (MMA) to compile financial soundness indicators (FSIs) in line with the IMF’s 2019 FSIs Compilation Guide, improve the data frequency of FSIs for deposit takers to monthly, and prepare new FSIs for insurance corporations.
October 3, 2023
Burkina Faso: Request for a Four-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso
Description: Burkina Faso faces large balance of payments (BoP) and security needs aggravated by acute food insecurity and political instability. In March 2023, the authorities obtained Fund emergency financing under the Food Shock Window (FSW) of the Rapid Credit Facility to address the ongoing food insecurity crisis, which in some regions remains acute. Following two military coups in 2022, international development support has declined. Burkina Faso has agreed with the Economic Community of West African States (ECOWAS) on a return to constitutional order, with elections to be held by July 2024.
October 2, 2023
Cayman Islands: Technical Assistance Report-Improving Estimates of Gross Domestic Product
Description: A technical assistance mission to the Economics and Statistics Office (ESO) of the Cayman Islands supported improved methods for compiling Gross Domestic Product (GDP) by economic activity and by expenditure components and assessed the feasibility of compiling institutional sector accounts (ISA) for the Cayman Islands. Given the importance of tourism for the economy, guidance was provided on how to develop a Tourism Satellite Account (TSA). A review of the data sources and methods used to compile GDP at constant prices was undertaken and improvements to deflators in the construction and service areas were recommended. These data enhancements will improve the understanding of the Cayman Islands economy and will also assist the Cayman Islands in meeting the IMF Special Data Dissemination Standards requirements.
September 30, 2023
Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment
Description: At the request of the authorities of Sri Lanka, an interdepartmental (LEG/FAD/MCM, FIN) Governance Diagnostic Assessment (GDA) mission was conducted during March 20 - March 31, 2023. In line with the IMF’s 2018 Framework on Enhanced Fund Engagement on Governance, the diagnostic assessment focused on corruption vulnerabilities and governance weaknesses linked to corruption in macroeconomically critical priority areas of: (i) the anti-corruption, anti-money laundering and combating the financing of terrorism; (ii) fiscal governance (e.g., public financial management, tax policy and revenue administration, state enterprise management, and public procurement); (iii) central bank governance; (iv) financial sector oversight; and (v) enforcement of contract and protection of property rights. Annex 1 provides additional information on the methodology and scope of the Governance Diagnostic.
September 29, 2023
Republic of Armenia: Technical Assistance Report-Residential Property Price Index Statistics Mission
Description: This paper discusses the findings, summary and recommendations of residential property price index (RPPI) statistics technical assistance mission in the Republic of Armenia. The authorities are strongly committed to developing a publicly available RPPI for Armenia. Reliable property price indices and other indicators of real estate markets are essential for the assessment of developments and risks in property markets and understanding the linkages between property markets and financial soundness, as well as to IMF surveillance. The institutional arrangements for the compilation and publication of the RPPI should be clarified. The mission recommended using the time dummy hedonic method with a four-quarter window length to compile quality-adjusted indices. The experimental indices for apartments developed during the mission—comprising six regional sub-indices, one index for Yerevan and one national index—were compared with a stratified median approach. The resulting hedonic indices contained less volatility; however, they exhibited a similar trend. Stability checks on the estimated shadow prices for each rolling window and each stratum were performed. Overall, the estimated coefficients have plausible signs and are reasonably stable over time.
September 29, 2023
Vietnam: Technical Assistance Report-Macroeconomic Framework Technical Assistance–Ministry of Planning and Investment: Scoping Mission
Description: This paper presents the findings, summary and recommendations of macroeconomic framework technical assistance (TA) mission in Vietnam. The purpose of this technical assistance (TA) project initiated by this scoping mission is building capacity in macroeconomic analysis and forecasting in the Ministry of Planning and Investment (MPI). The MPI is establishing a Core Working Group (CWG) under MPI’s coordination that will carry out macroeconomic analysis and asked the IMF assistance in building the capacity of the CWG. The mission found that there is no fully-fledged multi-sector macroeconomic framework used by departments across different ministries in charge of macroeconomic analysis and forecasting. The CWG will take the lead in implementing the activities and identify targets in the TA action plan and will be supported by the IMF TA team. The CWG will develop and customize the macroeconomic projection tool (MPT) for Vietnam, operate the MPT to produce macroeconomic analysis and forecasting, develop user guides and manuals for staff, and present the output to policy makers as part of the policy making process.
September 27, 2023
Vietnam: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam
Description: The 2023 Article IV Consultation discusses that Vietnam experienced a robust post-pandemic economic recovery in 2022 thanks to strong economic fundamentals and prudent public health management during the pandemic. 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. The report recommends addressing the multiple headwinds affecting the economy calls for a comprehensive, multi-pronged response by the government. In addition, Vietnam should implement far-reaching reforms to meet its ambitious medium- and long-term objectives of sustained high and green economic growth. In addition, achieving the ambitious medium-term growth and climate goals will require accelerating reforms to improve the business environment, critical infrastructure, and human capital.