Estonia’s commitment to free markets and prudent financial policies has paid off handsomely. Demand pressures and rapid productivity growth have produced strong wage increases and large employment gains. Inflation, while moderate for a fast-converging economy, remains above the Maastricht...

El Salvador has made major strides on several fronts since the peace accords of 1992. The near-term outlook has strengthened, although challenges remain. The authorities are intended to limit tax exemptions and subsidies, and raise priority of banking reforms this year. Discussions focused on...

Since 1999, economic policies have sought to place the country on a path of sustainable growth, which would help reduce unemployment and poverty. The authorities have begun to address the risk of overheating, although demand policies may need to be tightened further. Monetary policy will be...

Progress in fiscal reforms, especially with regard to revenue mobilization, will require a broader reform of center-province fiscal relations in Lao People’s Democratic Republic. There are challenges ahead to restructure the state-owned commercial banks (SCB) and strengthen the banking system....

U.S. shocks explain a large part of French output common components. This paper analyzes the economic implications of two alternative welfare financing reforms: a reduction in payroll taxes funded by an increase in consumption taxes, and the other funded by a new levy on business value added....

Korea has enjoyed strong growth owing to rapidly increasing exports and consumption. Potential growth is slowing as the population ages, whereas social polarization is growing. Korea should implement plans to build an advanced financial system and improve service productivity by opening the...

Mauritania achieved substantial progress owing to its macroeconomic policies, budget formulation, governance, and transparency under the economic program. Executive Directors commended the program and emphasized the need for tight fiscal and monetary policies. Directors noted the implementation...

This paper discusses Sierra Leone’s Request for a Three-Year Arrangement under the Poverty Reduction and Growth Facility (PRGF). Sierra Leone has made considerable progress during the last PRGF-supported program toward macroeconomic stability. Macroeconomic performance was generally strong,...

This Selected Issues paper contains two studies examining key issues for fiscal management and long-term fiscal sustainability in Spain. The first study discusses how best to ensure fiscal discipline at lower levels of government by examining the institutional setting and mechanisms that make...

This Selected Issues paper examines the driving factors for the broad movements of investment over the past decade in Poland. After booming for half a decade, Poland’s investment plummeted during 2001–03 and has recovered only marginally since then. The paper provides a historical...