Country Reports
2024
July 19, 2024
Panama: Financial Sector Assessment Program - Technical Note on Macroprudential Framework and Policies
Description: Since the 2012 FSAP, Panama has significantly strengthened its institutional framework and instruments for macroprudential policy-making. Among other reforms, to strengthen the transparency of and accountability for macroprudential policy, the Superintendency of Banks of Panama (SBP) and the Financial Coordination Council (CCF) have made significant progress in implementing several of the recent high-priority IMF technical assistance (TA) recommendations. These include establishing a dedicated Macroprudential Policy Committee (CPMP), updating the SBP’s decision making process for macroprudential policy issues, drafting a macroprudential policy strategy document, improving public communication via the Financial Stability Report (FSR), and addressing data gaps. The CCF also made notable advancements in establishing its own Committee on Macroprudential Policy, developing member entities’ capacity on macroprudential policy, and gathering data.
July 19, 2024
Panama: Financial Sector Assessment Program - Technical Note on Financial Safety Net, Resolution, and Crisis Management
Description: Key institutional pillars of a financial safety net have not been established in Panama. While state-owned banks benefit from an explicit government guarantee, Panama does not possess a deposit insurance framework, lender-of-last resort (LOLR) or emergency liquidity assistance (ELA)mechanism to preserve financial stability. Panama, as a fully dollarized economy with no central bank, faces constraints on its development of key components of the financial safety net which will need to be overcome.
July 18, 2024
Papua New Guinea: Second Reviews Under Extended Arrangement Under the Extended Fund Facility and an Arrangement Under the Extended Credit Facility, and Request for Modification of Quantitative Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea
Description: Background. On March 22, 2023, the IMF Executive Board approved 38-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements with Papua New Guinea to help address a protracted balance of payments need manifested in foreign exchange shortages and to support the authorities’ reforms to address long-standing structural impediments to inclusive growth. The authorities have made progress in implementing reforms supported by the program, demonstrating continued commitment to program’s objectives. The tense political and social environment, culminating in civil unrest in January 2024, has affected the parliamentary calendar and delayed the adoption of laws.
July 18, 2024
United States: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the United States
Description: The U.S. economy has turned in a remarkable performance over the past few years. Hysteresis effects from the pandemic did not materialize and both activity and employment now exceed pre-pandemic expectations. Real incomes were diminished by the unexpected rise in inflation in 2022 but have now risen above prepandemic levels. Job growth has been particularly fast, with 16 million new jobs created since end-2020. However, income and wealth gains have been uneven across the income distribution and poverty remains high, particularly following the expiration of pandemic era support. The outlook is for a continued healthy rate of growth with balanced risks around the baseline forecast.
July 18, 2024
Germany: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany
Description: The economy contracted in 2023 due to high energy prices and interest rates. Headline inflation has fallen sharply as end-user energy prices have stabilized, but core inflation remains somewhat stickier, driven by services. Falling inflation and tight labor markets have turned real wage growth positive. High interest rates have boosted bank profitability, but part of this increase is likely temporary. High interest rates have exposed vulnerabilities in banks’ financing of commercial real estate activity.
July 16, 2024
Canada: 2024 Article IV Consultation-Press Release; and Staff Report
Description: The Canadian economy appears to have achieved a soft landing: inflation has come down almost to target, while a recession has been avoided, with GDP growth cushioned by surging immigration even as per capita income has shrunk. Housing unaffordability has risen to levels not seen in a generation, with demand boosted by immigration and supply facing continued challenges to expansion.
July 15, 2024
Iceland: 2024 Article IV Consultation-Press Release; and Staff Report
Description: Economic Developments. Following an impressive recovery from the covid pandemic and commodity price shocks in recent years, a coordinated tightening of monetary and fiscal policies has successfully slowed domestic demand growth, strengthened the current account, and started to lower inflationary pressures. Recent volcanic activity has disrupted lives and livelihoods, but the macroeconomic impact is limited.
July 15, 2024
Côte d'Ivoire: Second Reviews Under Extended Arrangement Under the Extended Fund Facility and Under the Arrangement Under the Extended Credit Facility, and Request for Modification of Quantitative Performance Criteria, and the First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; and Staff Report
Description: Côte d’Ivoire’s economy remains resilient against a still difficult global backdrop. The EFF/ECF-supported program approved in May 2023 (400 percent of quota), has helped to safeguard macroeconomic stability, as well as a moderate rating of debt distress, while growing challenges from climate change are being addressed under the recently approved RSF arrangement (150 percent of quota). The authorities’ ongoing commitment to reforms under both programs should support Côte d’Ivoire’s transformation towards upper middle-income status over the medium-term and enhance its resilience to climate change. Notwithstanding lower than expected cocoa production, the outlook remains favorable and has been boosted by still strong consumption and investment demand, as well as new activity in the oil exploration and production sector. Risks have become more balanced, reflected in increased interest from foreign investors along with ratings and outlook upgrades by ratings agencies.
July 15, 2024
Angola: 2024 First Post-Financing Assessment-Press Release; and Staff Report
Description: Angola remained resilient in the face of significant challenges in 2023, including weaker oil production and prices. However, the gains from fiscal consolidation were lower-than-anticipated and inflation increased. Angola’s capacity to repay the Fund is adequate though subject to risks. In the event of an adverse scenario involving a prolonged oil price shock, repayment indicators would weaken but remain adequate.