KEY ISSUES Context: Indonesia has strengthened policy and reserve buffers since mid 2013, in the face of global headwinds from the commodity down-cycle and episodes of volatility affecting emerging market economies. Policies have aimed at containing external and inflation pressures, helping to...

This 2014 Article IV Consultation highlights that Malaysia’s well-diversified economy continued to perform well in 2014. Growth accelerated to 5.9 percent, aided by robust domestic private demand and a recovery in exports. Lower energy costs helped contain inflation to 3.1 percent despite the...

China's economic performance hs been remarkable since the the reform process began 15 years ago. Notwithstanding the achievements that have been made, a number of serious problems remain. This papers discusses the current reform program and the effors being made to overcome the structural...

Context: The Philippine economy is expected to grow in line with potential, at around 6½ percent per annum. Inflation is projected to remain within the BSP’s target band (3±1 percent). The external position is strong and fiscal policy is prudent, with a declining public debt ratio. Its...

This 2015 Article IV Consultation highlights that Myanmar's economic growth remains strong, but macroeconomic imbalances have increased significantly over the past year. Real GDP growth for FY2014/15 (April-March) is estimated to have reached 8.5 percent. The fiscal deficit increased to 3...

Despite robust growth, rising inequality is widespread in many countries. At the same time financial instability and crises are occurring with greater frequency and severity. These two phenomena are related to the contest for a greater share of economic output between labor and capital, with...

This paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico’s external debt. It is shown that the interest rate differentials between peso- and U.S....

This paper explores the links between reforms, macroeconomic management and the occurrence of macroeconomic instability in China during the last decade, drawing upon previous analytical work and also employing the “Granger causality” test. It is concluded that the cycles did not originate...