KEY ISSUES Inflation subsided in 2013 but preexisting and emerging macro-financial vulnerabilities need to be tackled. After reaching a 15-year high in 2012, inflation is coming back within the central bank’s target thanks to tighter monetary policy and fiscal consolidation. However, a recent...

KEY ISSUES Context. Growth remains strong driven by robust exports, tourism, and construction, despite the recent floods and some slowdown during the 2013 national election. The outlook is favorable with renewed reform momentum after the elections but slow growth in Europe, the U.S. tapering,...

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. The economy is growing at a moderate pace. Abstracting from the impact of new large-scale natural gas production, GDP growth is estimated to have moderated to about 21⁄2 percent in 2013, owing in large part to weak investment and exports. Some pick up is expected in 2014,...

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...

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...

KEY ISSUES Context: Economic activity has accelerated, in part thanks to pro-cyclical macroeconomic policies. With domestic demand stronger, the current account deficit is widening again from a high level, and inflation remains well above target. Challenges: On current policies, Turkey can only...

KEY ISSUES Economic context. Growth was strong in 2012, and the economy is overheating from expansionary macroeconomic policies. The current account deficit has deteriorated significantly, a product of a currency appreciation in real effective terms, a growing fiscal deficit, and strong domestic...

KEY ISSUES Context: Growth in recent decades has been sluggish owing to persistent political turmoil, external shocks, and slow progress on structural reforms. Unemployment at nearly 9 percent continues to be stubbornly high, with youth and underemployment at significantly higher rates. The...

KEY ISSUES Context: A slowdown in growth in major emerging market economies (EMEs) and decline in commodity prices, and more recently, a reversal in push factors tied to a prospective exit from extraordinarily easy global monetary conditions, has put pressure on Indonesia’s balance of payments...