This paper analyzes likely effectiveness of the fiscal policy in supporting aggregate demand in Australia. The simulation analysis illustrates that the type of fiscal measure and the underlying behavioral responses have an important impact on the magnitude of fiscal multipliers. The Global...

This 2007 Article IV Consultation highlights that a modest recovery is finally under way in Portugal. Growth rose to 1.3 percent in 2006, led by strong external demand, which is driving a notable rebound in export growth. In response, corporate investment shows signs of strengthening, but...

In this study, the staff report for the review under the three-year arrangement under the Extended Credit Facility is discussed. Investment in iron ore and commercial agriculture and rebound in rubber prices are important for growth. Fiscal, monetary, and financial policies are discussed. An...

Economic conditions have stabilized, and the economy is projected to bottom out in 2010, giving way to a mild recovery in 2011 followed by stronger growth. The foremost policy challenge is to achieve the official fiscal consolidation targets so as to put debt ratios on a declining path and...

The staff report on Guatemala’s 2009 Article IV Consultation and Second Review under the Stand-By Arrangement, and Requests for Modification of Performance Criterion and Consultation Clause are presented. There are signs that the Guatemalan economy is starting to recover. Real GDP growth...

This paper discusses key findings of the Fourth Review Under the Poverty Reduction and Growth Facility (PRGF) for Nepal. The PRGF-supported program is broadly on track. All quantitative performance criteria for the fourth review were met. A number of structural performance criteria and...

The economy is on the right track, and program performance has been good. Fiscal adjustment is on track to restore fiscal sustainability. The adjustment plan appropriately focuses on reducing current spending while increasing investment and protecting the most vulnerable. The current monetary...

This paper discusses key findings of the Fourth Review Under the Extended Credit Facility (ECF) for Haiti. All end-March 2012 performance criteria were met. Implementation of structural reforms has also continued, although two out of three end-March 2012 structural benchmarks were not observed....

The staff report on Mexico’s 2008 Article IV Consultation focuses on economic and financial sector implications of the global crisis. Inflation has been anchored in a low range, and public and private balance sheets have been substantially strengthened. Most importantly, public external...

Croatia’s economy is also saddled with more pervasive rigidities and higher government involvement than many of its transition peers. The Croatian National Bank (CNB) pursued proactive policies, which helped ensure financial sector stability. A stable nominal exchange rate provided an...