New Zealand has experienced a decade-long robust economic expansion, owing to its sound macroeconomic policies and structural reforms, but resource constraints have emerged. Executive Directors welcomed the policy settings, supported by the anticipated evolution of external and global...

How should possible policy reforms and projects be assessed when prices give misleading signals? Revenues and costs at market prices then give distorted measures of social gains and losses and our appraisal should use social opportunity costs, or correctly defined, shadow prices. We show how...

Central America, Panama, and the Dominican Republic coped well with the global financial crisis of 2008-09. The impact was generally less severe and shorter lived than in previous episodes, the balance of payments adjustment was orderly, and the stability of the financial system was not...

The sensitivity of secondary sovereign loan market returns to three classes of economic news is estimated in the arbitrage pricing theory framework. Returns are characterized by a limited response to unexpected changes in procyclical U.S. aggregates. Shocks to country-specific balance of payment...

This 2011 Article IV Consultation highlights that the economy of Trinidad and Tobago is turning the corner, and growth is expected to resume in 2012 after an extended slowdown lasting three years. Real economic activity is expected to increase by 1.7 percent in 2012 as the nonenergy sector picks...

This 2011 Article IV Consultation highlights that Macedonia is poised to achieve low but positive growth under the baseline scenario of a shallow recession in the euro area. Under a downside scenario, growth would be weaker, and external financing pressures could arise. In the near term, the...

The 2012 Article IV Consultation discusses the economic outlook for Kuwait for 2012, which is broadly positive. Economic recovery is expected to strengthen, led by high government expenditure—particularly wages and capital expenditure. High fiscal and external surpluses are expected to...

Despite Mexico’s recent remarkable progress in adjusting its fiscal and external accounts and in restructuring its economy, the recovery of growth has remained elusive. This paper reviews some aspects of Mexico’s recent performance and suggests that systemic adjustment uncertainty, and...

This 1999 Article IV Consultation highlights that the Danish economy continued to perform well in 1997–98. Real GDP growth of about 3 percent remained above potential and unemployment fell to 6 percent, less than half its level only five years earlier. Consumer price inflation remained subdued...

Thailand is recovering from a challenging year marked by natural disasters of historic magnitude. This 2012 Article IV Consultation highlights that positive signs of a recovery are already under way with sharp improvements seen in high frequency indicators since December 2011. Executive...