KEY ISSUES Context and Outlook. The economy has entered a broadly favorable trajectory of healthy and balanced growth, thanks to a multi-year reform effort. Output should surpass its pre-crisis peak of 2008 for the first time this year, but now in a sustainable manner. Downside risks dominate...

This Selected Issues paper focuses on sustainability of public finances and low inflation in Lithuania. Lithuania aims to adopt the euro in 2015. Over the medium term, inflation in Lithuania will likely run somewhat higher than in the euro area on average, but this will be driven by continuing...

KEY ISSUES Context: Latvia’s economy continues to recover strongly as it joins the euro area. The output gap is now largely closed, and labor market conditions are tightening despite still high unemployment. The current account is close to balance, while inflation has fallen to near zero due...

KEY ISSUES The Baltic economies have performed well in the last two decades relative to other transition and emerging market economies, but they face some common challenges calling for national and regional policy responses. These challenges relate to their ability to sustain economic growth...

This Selected Issues paper focuses on the Baltic model, Baltic-Nordic links, and convergence. The Baltic countries form a distinct group within a tightly integrated Nordic-Baltic region. They are following similar approaches to economic policy, broadly in line with those of Northern European and...

KEY ISSUES Context. With a strong policy framework, Luxembourg has weathered the crisis well, and the economy is rebounding. The fiscal position remains sound, and the large financial sector has been resilient. But trend growth has slowed substantially. The financial sector will have to adjust...

This Selected Issues Paper analyzes the fiscal position and significant challenges for Luxembourg. Luxembourg's fiscal position is currently sound, however, fiscal safety buffers are being eroded. The country's healthy fiscal position will be challenged by forthcoming revenue losses as well as...

EXECUTIVE SUMMARY The near-term outlook continues to improve and program implementation remains on track. Activity and employment have turned out better than expected, supported by reduced economic uncertainty and benign market conditions in the region. The authorities have scaled up their...

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country

KEY ISSUES Steadfast policy implementation has been maintained through the final review of the program. Budget execution has once more been solid in 2013, with the fiscal deficit expected to remain within the Excessive Deficit Procedure ceiling. Budget 2014 targets a balanced adjustment path,...