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...

KEY ISSUES Growth has continued to recover from the 2011/12 low. In an environment of declining inflation—recently halted by a drought-driven food price shock—the fiscal stimulus has been successful in driving economic activity, and a planned program of infrastructure investment is expected...

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...

KEY ISSUES Context: Over the past year, Mexico has maintained macroeconomic stability and has made significant progress in advancing growth-oriented structural reforms. The country’s close ties with the global economy, while a source of strength, heighten the economy’s exposure to external...

KEY ISSUES Context. High oil prices and increased production have enabled the government to continue to record high fiscal and external surpluses and build strong buffers. Large infrastructure investments are expected to support the growth momentum. Outlook and risks. Overall real non-oil gross...

EXECUTIVE SUMMARY Discussions for the combined eighth and ninth reviews were delayed by a political crisis and marked by new adverse Constitutional Court rulings. Reflecting in part austerity and reform fatigue, tensions within the ruling coalition led to two prominent cabinet members tendering...

This paper discusses 2012 Article IV Consultation of Republic of Uzbekistan. Uzbekistan has been experiencing strong momentum in economic growth supported by sustained public investment and increased prices for commodity exports. The IMF report suggests that it is important to ease the...

This Selected Issues paper focuses on the challenges of small middle-income countries (MIC) in sSub-Saharan Africa (SSA) comprising Cape Verde, Namibia, and the Kingdom of Swaziland. The IMF report summarizes the analytic underpinnings that support the IMF staff's advice on policies to...

This Selected Issues paper examines fiscal policy implications for labor market and economic diversification in Botswana. The IMF report analyzes that large public employment significantly affect labor market outcomes in middle-income countries, including Botswana. It is noted that reforms aimed...

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country