This paper provides a background on the key policy challenges for Slovenia in the euro zone. Then, it assesses the discretionary scope to adjust spending and proposes initial steps to enhance budget flexibility so that fiscal adjustment can be targeted on relatively inefficient spending. This...

The Pakistani authorities placed a request for a nine-month extension of the Stand-By Arrangement (SBA), to get sufficient time to complete the remaining fifth and sixth reviews under the SBA. The authorities believe that extending the arrangement will provide time to complete the reform of the...

This paper discusses a request from Angola for a Stand-By-Arrangement (SBA). The requested SBA aims to support orderly policy adjustments to restore macroeconomic balances and rebuild international reserves. This program also includes a focused reform agenda aimed at medium-term structural...

Kuwait faced the global financial crisis from a position of strength, owing to expansionary fiscal stance. The economy is expected to grow steadily over the medium term as Kuwait continues to implement the development plan and global recovery supports demand for oil. The near-term macroeconomic...

This paper discusses key findings of the Second Review Under the Poverty Reduction and Growth Facility for Burkina Faso. All quantitative performance criteria (PC) were met. The indicative floor on social expenditures was not achieved, mainly because of capacity weaknesses in implementing...

Senegal achieved robust economic growth and low inflation under the economic program. Executive Directors emphasized the need to correct slippages in fiscal governance and transparency to ensure budgetary discipline and strengthen procurement rules and practices. They appreciated the action plan...

This 2008 Article IV Consultation highlights that Djibouti’s macroeconomic performance improved significantly, but inflation pressures are intensifying. Real GDP growth accelerated to 5.3 percent in 2007, driven mainly by foreign direct investment concentrated in the construction and port...

Djibouti’s 2007 Article IV Consultation focuses on the medium-term growth prospects and policies necessary to ensure that growth is broad based and accompanied by sufficient employment creation. Real GDP growth is estimated at 4.8 percent in 2006, driven by fiscal expansion, and a sizable...

In this study, Australia’s economic performance from the onset of the global financial crisis is discussed. A healthy banking system, flexible exchange rate, and robust demand for commodities from Asia are important for good performance. Although recent global market volatility has...

In Tonga, the fiscal position has strengthened but vulnerabilities remain. Directors have welcomed Tonga’s recovery from the global crisis but noted remaining vulnerabilities and a high debt burden. With downside risks clouding the outlook, Directors have emphasized the importance of...