This 1999 Article IV Consultation highlights that the economic recovery in France—which began hesitantly in the mid-1990s—strengthened in the first half of 1998 when internal demand became the driving force in a setting of price stability, strong competitiveness, and falling interest rates....

Strong fundamentals and a policy track record helped Mexico to withstand the fallout from the global crisis and aided recovery. The policy challenges have to take due account of significant global uncertainty, employment generation, and long-term fiscal reforms. The economy will benefit from...

Korea’s rapid recovery from the global downturn has transitioned into a full-fledged expansion. Policies to strengthen the resilience of the economy and pave the way for sustained and equitable growth is required. Greater two-way flexibility of the exchange rate is needed to support the...

The euro area (EA) plays a major role in the global economy. Market perceptions of events in the EA program countries illustrate the possibility of large spillovers from the area in times of stress. The prospect of large spillovers underscores the urgent need for actions to contain, and...

Paraguay weathered the global economic crisis well, supported by an appropriate policy response. The strong rebound of economic growth has given rise to overheating pressures. Policies need to adjust further to ensure a soft landing of the economy. The banking system remains sound, but there is...

This paper investigates the determinants of FDI inflows to emerging market economies, concentrating on the effects of economic policies. The empirical analysis also addresses the role of external push factors and of political stability using a domestic conflict events database. The results...

Korea has made a spectacular recovery from the Asian crisis. Executive Directors commended this developments, and stressed the need to implement monetary and fiscal polices. They commended the structural reforms, and emphasized the need to strengthen the asset management sector. They welcomed...

A decade of strong expansion in the Spanish economy led by a credit-fueled housing boom was hit by three major shocks. The policy response to Spain’s economic challenges has been strong and wide-ranging, helping to strengthen market confidence. A decisive implementation of the envisaged...

This 1999 Article IV Consultation highlights that since the early 1990s, Barbados has been experiencing steady economic growth founded on prudent economic management and generally favorable external conditions. Economic policy has incorporated fiscal and wage restraint, consistent with the...

Kosovo is still in the process of building key social and economic institutions. Economic performance over the past decade has been robust, but growth has been tilted toward domestic demand, fuelled by transfers and non-debt creating capital inflows. The adoption of the euro provides a strong...