Iceland has made considerable progress under an economic program supported by the Stand-By Arrangement (SBA). Successful implementation of fiscal adjustment, effective use of capital controls, and financial sector restructuring have underpinned the recovery. Executive Directors emphasized that...

In this study, economic performance remained robust throughout the global downturn, and shows signs of further strengthening. In 2010, the external position improved significantly, as fiscal surpluses raised official foreign assets, and the Highly Indebted Poor Countries (HIPC) debt relief...

With the Heavily Indebted Poor Countries (HIPC) completion, Congo’s prospects for achieving sustained growth and poverty reduction have improved. The HIPC completion reduced debt service obligations and increased the resilience of external debt indicators to shocks. Non-oil revenue is improved...

Real regional gross domestic product (GDP) contracted by 6 percent in 2009, reflecting a collapse in tourist arrivals and foreign direct investment (FDI)-financed construction activity. The global financial and economic crisis has also exposed areas of significant weaknesses, notwithstanding...

Economic activity is weak, but showing incipient signs of a recovery. Domestic financial markets remain stable and the growth outlook has improved. Better prospects for agriculture, mining and quarrying, and construction are expected to increase growth. Macroeconomic performance under the...

The labor market remains weak, disinflation has slowed, but falling wages are improving competitiveness. The weak economic environment is putting pressure on the banking sector. Financial conditions have deteriorated recently because of international financial market tensions. The Bank of Latvia...

Policy efforts in Latvia have supported stabilization. Immediate risks are much lower, but medium-term challenges remain. The government should focus on durable spending cuts, but revenue measures may also be required. Efforts to strengthen regulation and supervision to improve financial...

Cape Verde has demonstrated notable economic and policy resilience. The public investment program should be completed, but new external borrowing should be limited to restore fiscal buffers. The monetary policy framework could be improved in the medium term. The Bank of Cape Verde should step up...

Yemen is confronted with a range of difficult economic challenges. The reduction in oil revenues in the past year has affected the Yemeni economy through a set of direct and indirect channels. The loss of oil revenue contributed to a record fiscal deficit of about 10 percent of GDP in 2009,...

This paper discusses the Financial System Stability Assessment for South Africa, and reviews the Report on the Observance of Standards and Codes on Securities Regulation. The assessment reveals that South Africa’s sophisticated financial system is fundamentally sound and has so far weathered...