This paper presents Second Post-Program Monitoring Discussions focusing on Moldova. Governance in the banking system remains poor and the condition of some large banks is fragile. The budget faces a tight financing situation, and�without corrective measures�the deficit is projected to widen...

EXECUTIVE SUMMARY Ireland’s economic recovery is expected to remain strong. Growth is increasingly driven by domestic demand as well as exports, and it is job rich, with employment rising 2.2 percent y/y in Q1, bringing the unemployment rate down to 9.8 percent in May. After surging by 4.8...

EXECUTIVE SUMMARY Luxembourg’s main challenge is to strengthen an economic model that has served it well. Growth was close to 3 percent in 2014, and is projected at 2½ percent in 2015, with continued strong job creation. The model emphasizes maintaining fiscal stability and openness,...

KEY ISSUES Context: Belarus’ economic model continues to make it highly vulnerable to economic shocks. This was illustrated once more by the turbulence in foreign exchange and debt markets late last year, to which the authorities initially responded with administrative measures before allowing...

KEY ISSUES Context: Following a six-month political stalemate, the largest two parties reached an agreement in December to form a grand coalition, which enjoys a comfortable majority in parliament. The remittances-fueled growth is set to continue in the near term, but deep challenges remain in...

KEY ISSUES Switzerland has once again had to contend with capital flow volatility. Following the exit from the exchange rate floor in mid-January 2015 and the subsequent appreciation of the franc, the Swiss economy faces exchange rate overvaluation, slower near-term growth, and deflation. Both...

KEY ISSUES Context. After several years of near-stagnation, France’s economy is recovering, supported by an accommodative external environment, in particular lower oil prices, a depreciated euro, and low interest rates. However, structural rigidities continue to weigh on France’s medium-term...