Greece has made a strong start with the program, but challenges also remain evident. The economic response to the program has yet to play out fully. Inflation is too high. Fiscal developments are encouraging, but risks need to be addressed. A strong pension reform is essential to bolster fiscal...

The impact of the 2009 tsunami on tourism and on the Samoan economy is likely to be substantial. The effectiveness of monetary transmission in Samoa has improved over time; however, it is still below international standards. The adverse impact of the crisis on the functioning of the banking...

Samoa has suffered severe social and economic shocks. The outlook is challenging and subject to considerable uncertainty. Because of the tsunami’s potentially severe impact on tourism, real GDP is likely to contract this financial year. The fiscal strategy to shoulder the rebuilding costs,...

Although fiscal consolidation has short-term costs, the potential long-term benefits are considerable. Although adjustment is important for securing fiscal sustainability, reforms that raise potential growth could also support consolidation. Simulations show that the external environment also...

Japan’s economy is gaining strength, but vulnerability to sovereign risk is rising. The new government has a greater willingness to consider needed fiscal reforms. Timely stimulus and strong external demand have supported the economic recovery. Global events have focused on Japan’s fiscal...

This paper presents the Financial Sector Stability Assessment Update on the Russian Federation. Indicators of bank soundness and performance are broadly favorable but credit risk poses a challenge over the medium term, and capitalization should rise to support continued banking sector...

Irish policymakers have gained significant credibility, through assertive steps, to deal with the most potent sources of vulnerability. A continuation of vigorous policy efforts is required with an emphasis on risk management. Much progress has been made on the financial stability agenda, but a...

Poland’s macroeconomic performance was strong in the decade leading up to the global crisis. Poland’s commitments to the EU Stability and Growth Pact helped lower the fiscal deficit and limit government debt. Its strong financial supervisory framework helped foster a well-capitalized banking...

In Lithuania, the case for complementing the on going fiscal adjustment with revenue measures is strong. In addition to supporting the adjustment, options to raise revenue need to be tailored to enhance growth and export competitiveness. International and empirical evidence suggest important...

Performance under the last ECF-supported program was broadly satisfactory. The government has prepared a medium-term policy framework to consolidate recent progress, and enhance growth prospects and poverty reduction efforts. Burkina Faso’s risk of debt distress is high. Executive Directors...