Country Reports
2023
July 7, 2023
Senegal: Requests for an Extended Arrangement Under the Extended Fund Facility, an Arrangement Under the Extended Credit Facility, and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Senegal
Description: A cascade of external and domestic shocks –including the COVID-19 pandemic, rising global commodity prices and global economic slowdown linked to the Russian invasion of Ukraine, Ecowas sanctions against Mali, the US dollar appreciation, domestic spending pressures, and tightened global and regional financing conditions–have dampened economic activity in 2022, widened external and fiscal deficits, increased debt levels, and eroded regional international reserves. The challenging external environment, together with likely delays in the start of hydrocarbon production, will continue to weigh on economic activity in 2023. In the medium term, economic prospects remain favorable, with the temporary boost of oil and gas production, but ambitious reforms are needed to reduce macroeconomic imbalances, put debt on a downward trajectory, and make growth more inclusive. The impact of climate change in Senegal is projected to be severe and reforms to adapt to climate change while contributing to lower greenhouse emission rank high on the Senegalese authorities’ agenda.
July 5, 2023
Dominica: 2023 Article IV Consultation-Press Release; and Staff Report for Dominica
Description: The economy is recovering gradually but faces headwinds from the cost-of-living crisis, more limited policy space, and more frequent and costly climate shocks. Tourism rebounded in the second half of last year, but scarring effects from the pandemic, on the heels of large natural disasters, could prove significant considering lengthy school closures, the deep GDP contraction and associated erosion of fiscal space. Dominica’s climate adaptation and modernization agenda is driving growth, with priority being given to construction of a geothermal energy plant and a new international airport.
July 5, 2023
Democratic Republic of the Congo: Fourth Review Under the Extended Credit Facility, Request for Modification of Quantitative Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo
Description: Growth has remained strong and resilient, fueled by expanding mining activity. However, the escalation of the armed conflict in Eastern DRC is having major negative humanitarian effects and weighed on public finances; upcoming elections, scheduled at the end of 2023, are also adding to uncertainty. Since the last review, the government’s revenue shortfalls and rapid spending contributed to a deterioration of the external balance, excess domestic currency liquidity, exchange rate depreciation, and persistent inflation.
July 5, 2023
Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
Description: CEMAC benefited from favorable hydrocarbon prices in 2022. Economic recovery firmed up and the external position strengthened, with external reserves building up faster in recent months, although still below adequate levels. Monetary policy was tightened to stem rising inflation, and fiscal positions improved owing to higher oil revenues. However, underlying non-oil fiscal positions deteriorated, highlighting the necessity of accelerating reforms and tackling recent fiscal slippages, to help save part of the oil windfalls and bring polices back in line with Fund-supported program objectives and staff advice. This will help cope more effectively with downside risks, including hydrocarbon prices volatility, food insecurity, financial stability risks, higher inflation, funding squeeze, and debt vulnerabilities.
July 5, 2023
Republic of Serbia: 2023 Article IV Consultation, First Review Under the Stand-By Arrangement, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Serbia
Description: Serbia has made impressive economic gains over much of the past decade: living standards improved, inflation fell, public finances were strengthened, and reserves increased, helped by ample foreign direct investment (FDI) inflows. But spillovers from the war in Ukraine—especially the sharp increase in international energy prices—and deep-rooted problems in Serbia’s energy sector that came to a head last year, led to large external and fiscal financing needs, prompting the authorities to request a Fund-supported Stand-By Arrangement (SBA). Fiscal and external outturns for 2022 were both better than expected, and unemployment remains low. Record FDI inflows continue to drive reserves higher. But inflation remains a pressing challenge. Led by high food and energy prices, headline inflation is now well above the National Bank of Serbia’s (NBS’s) target band and core inflation has also increased sharply. Fiscal policy is expected to remain relatively tight in 2023, despite additional mid-year spending measures. Deep structural problems persist in the energy sector and are a key focus of the SBA. Long-standing geopolitical challenges remain.
July 5, 2023
Barbados: First Reviews Under the Extended Fund Facility and Under the Resilience and Sustainability Facility, Requests for Modification of Performance Criteria and Reform Measures, and Rephasing of Access Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Barbados
Description: After successfully weathering a series of shocks in recent years, the Barbadian economy is recovering strongly driven by a rebound in tourism and related activities. Public debt was brought back onto a downward trajectory and international reserves have risen to over 7 months of imports. The authorities are making good progress in implementing their updated Economic Recovery and Transformation (BERT) plan and their ambitious climate policy agenda. Following the completion of the 2018-22 Extended Fund Facility (EFF), a successor 36-month EFF arrangement along with a Resilience and Sustainability Facility (RSF) were approved in December 2022. The authorities are strongly committed to strengthen fiscal sustainability, advance structural reforms, and increase resilience to climate change and natural disasters.
June 30, 2023
United Kingdom-Anguilla-British Overseas Territory: Technical Assistance Report-Modernization of the Customs Legislative Framework
Description: The authorities in Anguilla sought technical assistance from CARTAC to conduct a comprehensive review if its customs legislation. It is recognized that the existing legal framework for customs is outdated and does not have the requisite foundation to support the modernization of Customs. The customs and Ministry of Finance have requested that the primary legislation be replaced by a completely new customs act based on the CARICOM model legislation for customs and, where appropriate to the context of Anguilla, also incorporates the provisions of the WTO TFA and WCO SAFE Framework.
June 30, 2023
Jordan: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria-Press Release; and Staff Report
Description: Despite a challenging global environment, Jordan’s economy continues to grow, albeit at a moderate pace, and the outlook is generally positive. Inflation is slowing in response to the tightening of monetary policy and lower commodity prices, and is expected to end 2023 at 2.7 percent, from its peak of 5.4 percent in September 2022. The current account deficit is projected to narrow this year, although less than projected earlier, and international reserves to remain at a comfortable level. Notwithstanding these positive trends, job creation remains a challenge, and unemployment remains very high.
June 29, 2023
Republic of Madagascar: Fourth Review Under the Extended Credit Facility Arrangement and Requests for a Waiver of Nonobservance of Performance Criteria and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Madagascar
Description: Real GDP exceeded its pre-pandemic level in 2022. However, lower demand from trading partners, recent weather events, and possible rising political tensions in the runup to the November 2023 presidential elections will continue to weigh on the outlook in 2023. While the fiscal deficit has recently widened, the settlement of crossliabilities with oil distributors is expected to improve the fiscal balance in 2023 and reduce fiscal risks going forward.