This year's capital markets report provides a comprehensive survey of recent developments and trends in the advanced and emerging capital markets, focusing on financial market behavior during the Asian crisis, policy lessons for dealing with volatility in capital flows, banking sector...

The Annual Report to the Board of Governors reviews the IMF's activities, policies, and liquidity position during the financial year (May 1, 1997 through April 30, 1998), as well as developments in the world economy, including balance of payments problems of its member countries, exchange rates,...

Inflation in Southeastern European (SEE) countries has been comparable with euro area inflation, partly owing to on the one hand, high initial price levels. On the other hand, the exchange rate regime is of paramount importance, including the inflation-targeting regime pursued in Albania. The...

Lithuania experienced a severe output decline. A large consolidation contained the deterioration in the fiscal deficit and safeguarded market financing. Further fiscal consolidation is needed to place deficits and debt on a sustainable path. Tackling the deficit in the social security system and...

The government of Pakistan completed its second full Poverty Reduction Strategy Paper (PRSP-II) in December 2008. PRSP-II builds on the first Poverty Reduction Strategy Paper (PRSP-I), which was adopted in December 2003, but is shaped by recent political and economic developments. Against this...

The overarching objective of Bhutan’s Tenth Five-Year Plan (10FYP)—which is also the Royal Government of Bhutan’s Poverty Reduction Strategy Paper (PRSP)—is to sustain this trajectory and reduce poverty further. Political stability, prudent economic management, and development of the...

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 anchor...

Ghana’s growth of 3–4 percent in 2009 was about twice the estimated average for sub-Saharan Africa. Fiscal performance in 2009 was weaker than programmed, giving rise to substantial new domestic expenditure arrears. The Bank of Ghana (BoG) eased monetary conditions as inflationary pressures...

The global recession has had a significant impact on economic performance and the outlook in Tanzania. Tanzanian banks were not directly affected by the global financial crisis, but second-round effects of the crisis have intensified the risks to the financial sector. Domestic liquidity...

After several years of robust growth, real GDP growth slowed to 2.9 percent in 2008 owing to a decline in mining output. The nonmining primary deficit (NMPD) amounted to 28.6 percent of nonmining GDP in 2008/09, well above the 16.8 percent NMPD in 2007/08. Botswana continues to peg the pula to a...