Country Reports
2023
May 24, 2023
Benin: Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements-Press Release; Staff Report; Debt Sustainability Analysis and Statement by the Executive Director for Benin
Description: Frontloaded financing under the 42-month Extended Fund Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements—approved by the IMF Executive Board in July 2022—has supported the authorities’ balanced policy response to exogenous shocks, helping boost business confidence and support the economic recovery. Nevertheless, there are important socio-economic headwinds from geoeconomic fragmentation, food insecurity, and the regional security situation. The authorities’ continued commitment to reform will help keep the economy on a sustainable path.
May 24, 2023
Luxembourg: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg
Description: Growth and employment have slowed somewhat, reflecting mostly weaker external demand, tighter financial conditions, and confidence effects. A large fiscal support package in the run up to the election has alleviated the impact of the energy shock on consumers and firms, with energy price controls limiting the pass-through to inflation and hence wage increases in a context of automatic wage indexation.
May 24, 2023
Guatemala: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guatemala
Description: Guatemala has weathered many crises well. Its ’s economy has proved resilient, building on a solid track-record of prudent policies—low fiscal deficits and debt-to-GDP ratio, and high international reserves—and strong remittance inflows. After a strong rebound in 2021, Guatemala’s economy has been slowing down—with GDP growth halving to a solid 4.1 percent in 2022. Inflation increased in 2022 but peaked in February 2023 (9.9 percent, year-on-year) to drop to 8.71 percent in March 2023. At the same time, public investment tends to be under-executed, poverty remains high, and tax revenue is weak, while substantial institutional, investment, and social gaps and governance weaknesses hinder progress. Addressing these requires higher broad-based and inclusive growth and further progress in the reform agenda. The authorities’ goal to attain investment grade and attract foreign investment could unlock opportunities. General elections are due June 25, 2023 (the second round on August 20, if needed).
May 23, 2023
Republic of Lithuania: Technical Assistance Report-Improvement of High Wealth Individuals Control Function– Project Report
Description: The purpose of this report is to provide an assessment of the development of the STI HWI Compliance Strategy and progress in executing the implementation plan tasks, as well as FAD recommendations for the future success of the HWI compliance program. The report will first focus in section II on key components of fully developed HWI compliance strategies currently in place in a number of tax administrations. The report includes in section III FAD’s findings, and early recommendations to the STI for consideration in the implementation of their strategy. It identifies the achievements and progress made by the STI in implementing their HWI Compliance Strategy including the tasks in their implementation plan. Section IV sets out additional FAD recommendations to assist the STI in reaching a fully developed level in the management of their HWI segment.
May 23, 2023
Uruguay: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay
Description: Uruguay showed strong resilience during the Covid-19 pandemic, owing to its high institutional quality, strong governance, and the authorities’ policy responses. Scarring effects in real activity and the labor market were mitigated somewhat by the authorities’ well-targeted responses. The authorities’ strong track record of implementing sound macroeconomic policies in a challenging environment has improved the country’s resilience to shocks. Since September 2022, the country is undergoing the most severe drought in forty years.
May 22, 2023
Lao People's Democratic Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao PDR
Description: Marked exchange rate depreciation following the global terms of trade shocks at the start of 2022 year brought high inflation and deteriorating living standards and caused substantial increases in the domestic currency values of public debt and bank liabilities. Nonetheless, growth continued, and the prospect is for a return to steady growth in 2023. But public debt is assessed to be unsustainable, and servicing government debt presents substantial risks to this outlook.
May 19, 2023
Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru
Description: Peru’s long track record of very strong economic fundamentals and institutional policy frameworks allowed the country to deploy a robust policy response to mitigate the impact of the pandemic and a subsequent successful withdrawal, while preserving macroeconomic stability and sustaining ample access to international capital markets. GDP growth slowed in 2022, falling below potential as the policy stimulus was withdrawn, the external backdrop turned more challenging, and political instability weighed on private investment. Growth is expected to remain subdued in 2023 and to converge gradually to potential over the medium term. Inflation rose in line with international trends but is expected to fall towards the upper end of the target range by year-end. The macroeconomic policy mix is broadly appropriate.
May 19, 2023
Kingdom of the Netherlands-Aruba: Technical Assistance Report-Financial Stability Diagnostic and Scoping Mission
Description: Aruba has a sizeable financial sector, dominated by commercial banks that are generally well capitalized and hold ample liquidity buffers. Within the context of a conservative business model, capital adequacy and liquid assets to total assets ratios have been around double the regulatory minima. Banks are profitable and before the pandemic the NPL ratio was at a moderate level. Due to the Covid-19 pandemic, the NPL risks increased, but have remained within acceptable ranges.