Country Reports
2023
May 31, 2023
People’s Republic of China—Hong Kong Special Administrative Region: 2023 Article IV Consultation Discussions-Press Release; and Staff Report
Description: After coping with another year of large COVID-related disruptions, economic activity is normalizing with the re-opening of the border, including with Mainland China. Strong fiscal policy support has helped the economy navigate through multiple shocks over the last few years, while strong institutional frameworks and financial buffers have allowed the financial system to remain resilient and continue to operate smoothly, including the Linked Exchange Rate System. The economy is facing macro-financial challenges amid rising interest rates, spillovers from strains in Mainland China’s real estate sector, adjustment in the local property market, and global economic slowdown.
May 31, 2023
Somalia: Fifth Review Under the Extended Credit Facility Arrangement, Requests for Waiver of Nonobservance of a Performance Criterion, Modification of Performance Criteria and Indicative Target, and Interim Assistance-Press Release; and Staff Report
Description: Somalia continues to face drought and acute food insecurity in some areas, and the security situation remains tense as the government has stepped up its military advances against Al-Shabab. Despite these significant challenges, the authorities remain committed to the reform effort. Program performance is broadly satisfactory and the HIPC Completion Point (CP) appears achievable by 2023Q4.
May 31, 2023
Suriname: Technical Assistance Report on Government Finance Statistics Mission-(October 10–21, 2022)
Description: This technical assistance (TA) mission on Government Finance Statistics was conducted during October 10 - 21, 2022. The main purpose of the mission was to review the progress made by the authorities in implementing previous TA recommendations and provide further support to improve fiscal data compilation and dissemination in line with international standards set out in the Government Finance Statistics Manual 2014.
May 30, 2023
Antigua and Barbuda: 2022 Article IV Consultation-Press Release and Staff Report
Description: Antigua and Barbuda’s economy is on a gradual recovery path, following a sharp contraction in 2020 due to the COVID-19 pandemic. Higher food and fuel prices are adding to inflation, eroding real incomes, and exacerbating fiscal and external imbalances. The economy is projected to grow by 6 percent in 2022 supported by tourism and construction activity, but output will return to pre-pandemic levels only by 2025 due to scarring effects of the pandemic. Inflation is expected to accelerate to 8½ percent in 2022, reflecting the pass-through of global prices to the domestic economy. Continued fiscal consolidation efforts and the growth recovery are bringing down the primary deficit and debt-to-GDP ratio, but gross financing needs are high and arrears continue to be accrued. The financial system has adequate capital and liquidity buffers, with stable NPLs so far, but private sector credit growth is weak. Further commodity price shocks, a sharper-than-expected slowdown in key trading partners, a resurgence of COVID, tighter global financial conditions, lower citizenship-byinvestment revenues, and the ever-present threat of natural disasters all represent material downside risks.
May 26, 2023
Mongolia: Technical Assistance Report-Central Bank Communications
Description: The report reviews the existing communication framework of Bank of Mongolia and identifies several areas where Bank of Mongolia could enhance the effectiveness of its communications. The analysis focuses on the assessment of the monetary and financial policy communications as well as the evaluation of the internal organization of the Bank of Mongolia’s communication function. The organizational arrangements are reviewed in terms of structure, resources, and procedures. The report also highlights the importance of establishing several pre-conditions for effective central bank communications, which include the presence of sound legal and normative frameworks particularly in relation to the mandate and independence of the central bank.
May 25, 2023
Sweden: Financial Sector Assessment Program–Technical Note on Macroprudential Policy
Description: Since the previous FSAP macroprudential policy in Sweden has advanced considerably. The mandate for FI is now well established, FI has increased risk weights on commercial real estate, tightened amortization requirements for residential real estate and increased several capital buffers – including changing the CCyB policy to set a positive neutral rate of 2%. During the pandemic many of these requirements were relaxed but have now been re-established as the economy recovers.
May 25, 2023
Sweden: Financial Sector Assessment Program–Technical Note on Crisis Management and Resolution
Description: The Swedish financial safety net and crisis management arrangements rest on sound foundations and have been strengthened further by legislative and policy reforms in the financial sector. The introduction of the Banking Recovery and Resolution Directive (BRRD) ahead of the 2016 Financial Stability Assessment Program (FSAP) established a well-developed statutory regime for supervisory early intervention, crisis management and resolution in Sweden. Since then, the government has implemented new EU Regulations on Recovery and Resolution of CCPs via complementary Swedish legislation establishing an early intervention, recovery, and resolution planning regime for CCPs. The new Riksbank Act, which came into force in January 2023, provides an explicit statutory basis for the central bank to provide liquidity support to avert “a serious disruption to the financial system in Sweden.”
May 25, 2023
Sweden: Financial Sector Assessment Program–Technical Note on Stress Testing of the Financial Sector
Description: Sweden’s financial system has weathered the COVID-19 pandemic well. Strong macro- fundamentals, regulatory capital buffers exceeding minimum requirements by a wide margin, ample liquidity reserves of banks, and prompt market liquidity support measures by the authorities helped the financial system exit the COVID-19 crisis without a significant impact on profitability, including loan portfolio losses.