KEY ISSUES Context. Since the mid-2000s, macroeconomic stability supported by high world commodity prices and active social policies have contributed to nearly tripling income per capita and reducing poverty in Bolivia. Prudent fiscal policies allowed saving a sizable portion of the hydrocarbon...

KEY ISSUES Context. Economic performance has been weak and public debt is high. Foreign reserves are under pressure as fiscal and external imbalances widened in 2012 and further in 2013. Recognizing the need for urgent action, the authorities announced ambitious budget consolidation proposals in...

This Selected Issues paper assesses empirically the motives and effectiveness of foreign exchange (FX) interventions in Peru. The results of the study indicate asymmetries both in the Central Reserve Bank of Peru's reaction function and in the effectiveness of FX interventions. Probit estimates...

The unconventional energy boom has had significant positive effects on Canada’s economic activity and has the potential to contribute even more in the future with the appropriate extension of infrastructure capacity. Our findings suggest that while limited exports capacity would result in...

EXECUTIVE SUMMARY Macroeconomic developments are broadly in line with program projections. There are signs of a gradual recovery from the effects of the global financial crisis and hurricane Sandy. Real GDP growth for 2013/14 is projected at just under 1 percent, supported by improved activity...

KEY ISSUES Context. Macroeconomic stability has been maintained and policies are broadly in line with the recommendations of the 2012 Article IV consultation. Growth is expected to slow somewhat, reflecting in part lower coffee production and slowdown in construction. Inflation expectations are...

This Selected Issues paper examines the performance of Uruguay's exports, external balances, and relative price movements over the past decade and applies the IMF's standard external sector assessment tools to Uruguay. The results indicate that Uruguay has made important strides in export...

KEY ISSUES Context. Growth remains robust while inflation has fallen to very low levels. However, declining commodity export prices and a substantial fiscal slippage have weakened the external position. The authorities have already tightened fiscal policy, but more will be needed to buttress...

This Selected Issues paper focuses on constructing a high-frequency economic growth indicator for Suriname. Most economic data for Suriname are available only with a substantial time lag and on a low-frequency basis, impeding such analyses. This paper presents a simple econometric model that...

Concluding Remarks This note analyzed the recent fiscal reforms, which can make the fiscal framework more instrumental in addressing challenges that Mexico will likely face in coming years. Mexico would benefit from building of fiscal policy buffers to reduce the exposure to high financing and...