Jamaica : Financial System Stability Assessment
Author/Editor:International Monetary Fund. Monetary and Capital Markets DepartmentPublication Date:December 3, 2018Electronic Access:Free Full Text. Use the free Adobe Acrobat Readerto view this PDF
Summary: The macroeconomic environment has improved, reflecting the authorities’ efforts, supported by an IMF arrangement. Previously, years of high fiscal deficits, public enterprise borrowing, and financial sector bailouts led to rapid government debt accumulation, crowded out private credit, increased financial dollarization, and stifled economic growth. Fiscal discipline has been essential to reduce public debt (to about 100 percent of GDP). With government debt accounting for a sizable share of financial institutions’ assets, falling interest rates on government debt are leading to a search for yield. Also, entrenched structural obstacles, including high crime, bureaucratic processes, insufficient labor force skills, and poor access to finance still constrain economic growth. The authorities have made good progress in implementing the 2006 FSAP recommendations. Work on the regulatory framework has significantly advanced in several areas such as securities dealers’ activities, powers to the Bank of Jamaica (BoJ), payment systems, and the introduction of the centralized securities depository. However, the crisis management framework and risk-based supervision work has been lagging.Series:Country Report No. 18/347
IMF Staff Concludes Visit to Jamaica
December 7, 2018
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
The unemployment rate is at an all-time low of 8.4 percent, with significant gains among women and youth.
Protracted wage negotiations with the unsettled groups continue to create fiscal uncertainty.
Financial sector reforms are well-focused on rolling out risk-based consolidated supervision, enhancing supervisory capacity, and introducing changes to investment limits and liquidity requirements.
An International Monetary Fund (IMF) staff team led by Uma Ramakrishnan visited Kingston from December 3 to 7, 2018, to take stock of progress on Jamaica’s economic reform program supported by the IMF’s precautionaryStand-By Arrangement (SBA). At the end of the visit, Ms. Ramakrishnan issued the following statement:
“Positive developments continue to sustain Jamaica’s economic reform program. The unemployment rate is at an all-time low of 8.4 percent, with significant gains among women and younger workers. Inflation is in the Bank of Jamaica’s (BOJ) target range of 4–6 percent. Gross international reserves were at US$3.4 billion at end-November. Growth for this fiscal year is expected to be 1½–2 percent. Looking ahead, lower global oil prices, if sustained, should support a narrower current account deficit and support domestic demand.
“Continued buoyancy in tax revenue is supporting more capital spending, helping economic activity and living standards. Public debt is expected to fall below 100 percent of GDP by the end of this fiscal year, for the first time since FY2000/01.
“Protracted wage negotiations with the unsettled groups, however, pose risks to this positive picture as they create budgetary uncertainty. This could weigh against efforts to reallocate resources away from the wage bill and toward priority spending areas such as crime, social protection, and disaster resilience. Beyond the current wage negotiations, more fundamental reforms to the compensation framework for public sector employees and a streamlining of government functions, will be necessary to sustainably reduce the wage bill.
“The BOJ and the Financial Services Commission (FSC) are jointly undertaking a risk-based pilot program for consolidated supervision, informed by the recent IMF’s Financial Sector Assessment Program (FSAP). There is also close cooperation between the BOJ and the FSC aimed at better monitoring and sharing of financial sector regulatory information.
“During the visit, the team met with Prime Minister Andrew Holness, Minister of Finance and the Public Service Dr. Nigel Clarke, Bank of Jamaica Governor Brian Wynter, and Jamaica’s high-level officials from different ministries, agencies and the central bank. The team also engaged with members of the private sector, labor unions, and the opposition.
“We would like to thank the Jamaican authorities for their continued hospitality and frank discussions.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: RANDA ELNAGAR
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG
IMF Staff Concludes Visit to Barbados
December 7, 2018
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board meeting.
Barbados has made an excellent start in implementing its ambitious and comprehensive economic reform program.
The rapid completion of the domestic part of the public debt restructuring has been very helpful in reducing uncertainty.
The government has engaged in intensive discussions with the social partnership to build public support for its economic reform program.
At the request of the Government of Barbados, an International Monetary Fund (IMF) team led by Bert van Selm visited Bridgetown from December 4-7, to discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF). At the end of the visit, Mr. van Selm made the following statement:
“Barbados has made an excellent start in implementing its ambitious and comprehensive economic reform program. The country’s international reserves, which reached a low of US$220 million (5-6 weeks of import coverage) at end-May 2018, have more than doubled since then, amounting to more than US$500 million in early December. This has helped to rebuild confidence in the country’s macroeconomic framework.
“A comprehensive debt restructuring was announced on June 1, 2018. After intensive discussions, an exchange offer for domestic debt (Barbados dollar-denominated) was launched in early September. On October 15, the government announced reaching agreement with an overwhelming majority of domestic creditors, with support of all commercial banks, general and life insurers, the National Insurance Scheme, the Central Bank of Barbados, and smaller creditors. The domestic debt exchange operation was finalized on November 19. The rapid completion of the domestic part of the debt restructuring has been very helpful in reducing economic uncertainty, and the terms agreed with creditors will help put public debt on a clear downward trajectory. A much-reduced government interest bill will help create much-needed fiscal space for increased social spending and investment in infrastructure.
“Progress being made by the authorities in furthering good-faith discussions with external creditors is welcome. Continuing open dialogue and sharing of information will remain important in concluding an orderly debt restructuring process; completion of the external debt restructuring would help further reduce uncertainty.
“The government reported a primary surplus of 2½ percent of (annual) GDP in the first six months of FY2018/19 (April-September 2018). In October, the authorities launched a program to improve efficiency and reduce the public wage bill by laying off and retraining workers in the central government and public entities. This should help create a leaner, more efficient public sector, geared towards facilitating private sector-led growth. It should also help reduce central government transfers to state-owned enterprises, from a level that had become unsustainably high. In November, the authorities announced plans to modify the corporate income tax (CIT) framework, seeking to unify rates that apply to the international business sector and local enterprises. There are some risks to this reform, including making corporate income tax revenues more dependent on maintaining international competitiveness.
“Barbados has also made good progress towards meeting end-December 2018 structural benchmarks under the EFF. In October, a regulatory sandbox for fintech start-ups was created to allow them to try out new technologies in a well-defined and controlled space. Legislation to facilitate a more efficient process for providing construction permits is underway, as is legislation to support a more efficient budget process, and stronger oversight of SOEs.
“Following IMF Executive Board approval of the EFF on October 1, 2018, both the Caribbean Development Bank and the Inter-American Development Bank approved policy-based loans. These operations, worth US$75 million and U$100 million respectively (a combined 3½ percent of GDP), will help finance the government, rebuild reserves, and support the reform process with policy advice.
“The government has engaged in intensive consultations with the Social Partnership to build public support for its economic reform program. In October, a BERT Monitoring Committee was set up, and tasked to report to the Social Partnership and the public. Strong ownership and broad societal support bode well for successful program implementation and helping Barbados to achieve better living standards for all its citizens.
“The team would like to take this opportunity to thank Barbados’ authorities and the technical team for their openness and candid discussions.”
IMF Communications Department
IMF Staff Concludes Visit to The Bahamas
December 10, 2018
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
The Bahamian economy continues to recover, with real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019.
The Fiscal Responsibility Law (FRL) will support the government’s efforts to secure fiscal sustainability and put debt on a downward path.
An International Monetary Fund (IMF) team, led by Fabian Bornhorst, visited The Bahamas during December 3-7, 2018 to review latest economic developments and prepare for the 2019 Article IV consultation (planned for April 2019). During the visit, discussions focused on the outlook and risks, fiscal developments, and the financial sector. At the conclusion of the visit Mr. Bornhorst issued the following statement:
“The Bahamian economy continues to recover, with real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019. Growth is driven by an increase in tourist arrivals, paired with an expansion of hotel room and airlift capacity, and against the backdrop of the continued expansion of the U.S. economy. This calls for maintaining strong fiscal and financial policies to bolster the Bahamian economy’s resilience and build buffers should external conditions become less favorable, and for advancing reforms to achieve more inclusive growth over the medium term.
“The enactment of the Fiscal Responsibility Law (FRL) is a welcome development that supports the government’s efforts to secure fiscal sustainability and put debt on a downward path. Implementation of the FRL framework will also increase transparency and enhance policy credibility. The government’s plan to establish a disaster relief fund as part of a broader strategy for preparedness and risk reduction policies is a welcomed step.
“The government has narrowed the fiscal deficit from 5.5 percent of GDP in FY 2017 to an estimated 3.3 percent in FY 2018. In the budget for FY 2019 the government committed to further fiscal consolidation, targeting an overall deficit of 1.8 percent of GDP. This is supported by various revenue mobilization measures. As noted during the 2018 Article IV consultation, fiscal consolidation should also include decisive measures to contain expenditure growth in the short and medium term. The team welcomed the government’s transparent recognition of accumulated arrears and the budgetary provisions to clearing them, as well as the plans to put in place robust expenditure control systems.
“The banking system as a whole has strong capital and liquidity ratios, and banks have made progress towards improving asset quality. As of June 2018, the average capital to risk-weighted assets ratio across domestic institutions was 34 percent, above the regulatory target ratio of 17 percent, and non-performing loans declined to 9.6 percent of total loans, from 12.3 percent a year earlier. The mission recommended the speedy establishment of the credit bureau to enhance credit market efficiency, increase credit growth, and help financial inclusion.
“The Central Bank of The Bahamas is preparing to pilot a digital central bank currency. The team recognized the role new financial technologies can play in fostering financial inclusion, and concurred that a gradual approach will help mitigate potential risks to the economy.
“The mission welcomed the government’s firm commitment to a well-regulated international financial and business sector, and recognized the significant steps taken to increase compliance with international standards on Anti-Money Laundering and Combating the Financing of Terrorism. The team made the case for sustaining efforts to fully implement the Action Plan agreed with the Financial Action Task Force, including to mitigate financial risks associated with the withdrawal of correspondent banking relationships.
“The mission met with the Honorable K. Peter Turnquest, Deputy Prime Minister and Minister of Finance, Mr. John Rolle, Governor of the Central Bank of The Bahamas, other senior government officials, and representatives of the private sector. The mission would like to thank the authorities and other interlocutors for the open and productive discussions.”
IMF Communications Department
IMF Staff Concludes Visit to Costa Rica
December 12, 2018
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
An International Monetary Fund (IMF) team led by Ravi Balakrishnan visited San José from December 4 to 11 to discuss recent economic developments, the fiscal reform, and the overall macro and financial outlook. The mission held fruitful discussions with Central Bank Governor Rodrigo Cubero, Finance Minister Rocío Aguilar, members of the Legislative Assembly, other senior government officials, and representatives of the financial and private sectors. At the end of the visit, Mr. Balakrishnan issued the following statement:
“Economic growth has moderated in the second half of the year, with the monthly economic activity index (IMAE) only rising by 2.7 percent in 2018Q3, compared with 3.9 percent in 2018Q2 (yoy). Consumer confidence also declined to its lowest level in November since records began in 2002. The slowdown reflects multiple shocks buffeting the Costa Rican economy, including a three-month public-sector strike against fiscal adjustment efforts, spillovers from the Nicaraguan crisis, rising global interest rates, and the significant uncertainty that surrounded the fiscal reform. Against this backdrop, the mission forecasts growth of 2.6 percent in 2018. Inflation should remain at the lower end of the 2-4 percent target range as 2018 closes, although inflation expectations did breach the upper limit of the band in November given expected pass-through of the recent colón depreciation.
“The mission welcomes the recent passage of the fiscal reform bill, which constitutes a critical step towards restoring confidence and, if fully implemented, re-establishing fiscal sustainability. The reform not only represents efforts on the revenue and expenditure fronts, but more importantly, of expenditures controls in the future. In a context of further expected hikes in U.S. interest rates in 2019, the large fiscal imbalance continues to be the main risk to macroeconomic stability. Indeed, central government debt is expected to reach 53 percent of GDP by end-2018. Given this, to maximize the confidence effects from the fiscal reform, it will be important to ensure its timely implementation and clearly communicate financing plans for 2019 and beyond. Additional front-loaded fiscal adjustment would help reduce funding needs in the short term and further improve debt dynamics. The mission welcomes the broad consensus on using the OECD accession process as a catalyst for boosting competitiveness and employment.
“The mission would like to thank the authorities for their warm hospitality and all stakeholders for the candid discussions. The team looks forward to returning in February 2019 to conduct the Article IV Consultation.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: MARIA CANDIA ROMANO
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG
Venezuela
Transcript of IMF Press Briefing
Gerry Rice Director, IMF Communication Department.
December 13, 2018
QUESTIONER: On Venezuela, do you have any update on the situation regarding the censure declaration, and when was the last time you have had contacts with Caracas officials in the last two weeks?
MR. RICE: Thank you very much. On Venezuela, I can give you a little bit of an update relative to a few weeks ago when we talked about it. Again, just for those who don’t follow it, just to remind, that one of the obligations of membership of the IMF, is for countries to provide accurate and timely data. Earlier this year, our Executive Board had issued a Declaration of Censure against Venezuela for its failure to implement remedial measures, and to comply with that obligation regarding data.
I can confirm that we have received from the Venezuelan authorities, and IMF Staff is currently in the process of reviewing that data, and we will be submitting a report to the Board in the coming weeks for the Board’s consideration of whether that data complies with the obligation that I mentioned earlier.
I don’t have the specific date for that Board Meeting to take place at this stage as I said, staff is reviewing the data that we have received from the Venezuelan authorities, that’s where we are. I don’t have the date either for when was the last interaction; but there has been an interaction, we’ve received data, now we are looking at it, and that will go forward to the Board.
QUESTIONER: So, the Declaration of Censure is dropped now?
MR. RICE: That will be a no. That will be a decision for the Board to take when it meets and makes an assessment of the member’s compliance with its obligation in the context of the data provision.
Suriname :
2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Suriname
Author/Editor:International Monetary Fund. Western Hemisphere Dept.Publication Date:December 20, 2018Electronic Access:Free Full Text. Use the free Adobe Acrobat Readerto view this PDF fileSummary:Suriname is recovering from the deep recession of 2015-16. Growth has turned positive, inflation has reduced to single digits, real interest rates have turned positive, and the external position has on balance strengthened. Nonetheless, the economy remains heavily dependent on the mineral sector, and faces fiscal, monetary, and banking sector vulnerabilities.Series:Country
Report No. 18/376
ENGLISH
Publication Date:December 20, 2018ISBN/ISSN:9781484391723/1934-7685
IMF Holds Informal Board Briefing on Haiti
December 26, 2018
On October 29, 2018, the Executive Board of the International Monetary Fund (IMF) was briefed by staff on economic developments in Haiti, whose Article IV consultation is delayed by 23 months.
Informal sessions to brief the Board are based on information available to the staff. They are held for members whose Article IV consultations are delayed by more than 18 months.
IMF Executive Board Concludes 2018 Article IV Consultation with Panama
December 28, 2018
On December 12, 2018, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with Panama.
Despite slowing in 2018, Panama is expected to remain among the most dynamic economies in the region with strong fundamentals. Growth is estimated at 3.7 percent in the first half of 2018 (compared to 5.4 percent a year ago), reflecting a sharp deceleration in key sectors including construction, which was affected by a prolonged strike in April/May. The unemployment rate increased marginally to 5.8 percent in March 2018 from a year ago, reflecting less dynamic activity. Inflation remains subdued at 0.8 percent (year on year) in September 2018, (compared to 0.5 percent in December 2017) despite supply shocks that have increased food and fuel prices. The overall deficit of the Non-Financial Public Sector (NFPS) reached 1.6 percent of GDP in the first half of 2018 (compared to deficit of 0.2 percent of GDP in the first semester of 2017), due to accelerated budget execution to support the economic weakening. The external current account deficit stood at 8.0 percent of GDP in 2017, as a significant increase in oil imports (fueled by higher international oil prices) was offset by strong service exports, driven partly by additional revenue from the expanded Panama Canal. Credit growth has decelerated as financial conditions have started to tighten.
The outlook remains positive, albeit set against heightened downside risks. Growth is projected at 4.3 percent in 2018, but to rebound to 6.3 percent in 2019 supported by the opening of a large mine (Minera Panamá) and a recovery in construction, and subsequently converge to its potential of 5½ percent over the medium term. Inflation is expected to average about 2 percent. The external current account deficit, mostly covered by FDI, is expected to reach 9 percent of GDP in 2019 and gradually decline to about 5½ percent of GDP over the medium term. Fiscal policy is expected to remain guided by the amended Fiscal Responsibility Law (FRL). The overall NFPS deficit is projected to increase to 2 percent of GDP in 2018–19 and gradually fall to 1½ percent of GDP over the medium-term, keeping public debt sustainable and below the FRL indicative of target of 40 percent of GDP. Key risks relate to setbacks in implementing the remaining Financial Action Task Force (FATF) recommendations and making continued progress on tax transparency, continued oversupply in the domestic property markets, delays in completing the large mining project (following the recent Supreme Court ruling which creates uncertainty about some elements of the contract), political uncertainty ahead of the upcoming elections; a sharper-than-expected tightening of global financial conditions, and rising trade protectionism.
Executive Board Assessment [2]
Executive Directors commended Panama’s impressive growth performance and noted that macroeconomic fundamentals remain solid, with growth set for a rebound in the near term. Directors considered that, while the outlook remains positive, the balance of risks is tilted to the downside. Against this background, they called for sustained policy efforts to strengthen the AML/CFT framework and enhance tax transparency to preserve Panama’s competitive advantage as a regional financial center. They also recommended measures to enhance financial sector resilience and reforms to facilitate continued robust and inclusive growth.
Directors welcomed the recent good progress on technical compliance with FATF standards, bringing Panama on par with its peers, while underscoring the importance of effective implementation of the Anti Money Laundering/Combatting the Financing of Terrorism (AML/CFT) framework. In this context, they encouraged the authorities to continue strengthening supervisory capacity for AML/CFT oversight, including through risk–based approaches, and further addressing AML/CFT risks to which Panama is exposed. Directors emphasized the need to promptly address the remaining shortcomings in the AML/CFT framework, including making tax crimes a predicate offense to money laundering and ensuring the availability of timely and accurate beneficial ownership information of entities incorporated in Panama. In addition, the authorities should advance the implementation of tax transparency initiatives to ensure a successful Global Forum assessment against enhanced standards.
Directors were encouraged by the authorities’ continued commitment to a prudent fiscal stance and agreed on the importance of preserving the track record of fiscal discipline to keep the public debt‑to‑GDP ratio on a downward trajectory. They concurred that the revised deficit ceilings provide the budgetary space to accommodate additional capital spending, given the softening activity this year, but recommended a gradual withdrawal of the stimulus in the near term as growth gathers pace. Directors also saw scope for raising tax revenue through improvements in revenue administration to support key social expenditures. They welcomed modifications to the social fiscal responsibility law, which simplified and enhanced the transparency of the fiscal rule; and noted the approval of a law to establish a fiscal council, which further bolsters the fiscal framework.
Directors noted the stability of the financial system and the continued progress in financial sector reforms, including the alignment of prudential regulations with Basel III. They urged the authorities to strengthen risk‑based supervision and reiterated the importance of putting in place robust frameworks for crisis management and bank resolution. In addition, Directors recommended measures to further strengthen macro‑prudential policies and systemic risk oversight, including through improved inter‑agency coordination.
Directors called for a reinforcement of the structural reform agenda to sustain high potential growth, while also reducing inequality. They agreed on the need to sustain productivity growth through reforms to improve skills and education quality, attract talent, and further improve the investment climate. Strengthening social policies to continue reducing poverty, improve income distribution, and ensure inclusive growth over the medium‑term were also encouraged.
Panama: Selected Economic and Social Indicators
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| (Percent change) | |||||||||
| Production and prices | |||||||||
| Real GDP (1996 prices) | 5.8 | 5 | 5.4 | 4.3 | 6.3 | 5.8 | 5.6 | 5.5 | 5.5 |
| Consumer price index (average) | 0.1 | 0.7 | 0.9 | 1.5 | 2 | 2.1 | 2 | 2 | 2 |
| Consumer price index (end-of-year) | 0.3 | 1.5 | 0.5 | 1.5 | 2 | 2.1 | 2 | 2 | 2 |
| Output gap (% of potential) | -0.4 | -0.3 | -0.1 | -1.2 | -0.5 | 0.1 | 0 | 0 | 0 |
| Domestic demand (at constant prices) | |||||||||
| Public consumption | 7 | 11.8 | 10.1 | 9 | 5.6 | 5 | 5.6 | 4.9 | 3.7 |
| Private consumption | 7.5 | 19.1 | 17.2 | 6.3 | 6.8 | 5.4 | 4.3 | 4.8 | 4.1 |
| Public investment 1/ | -8.8 | -1.1 | -10.2 | -4.8 | 9.5 | 1.1 | 2.8 | -0.9 | 4.1 |
| Private investment | 6.5 | 0.8 | 6.1 | 6.6 | 4.9 | 5.2 | 4.6 | 5 | 4.3 |
| Financial sector | |||||||||
| Private sector credit | 11.4 | 8.4 | 6.5 | 5 | 6 | 7.1 | 6.8 | 6.8 | 6.9 |
| Broad money | 5.5 | 4.1 | 5.2 | 5.3 | 6.7 | 8 | 7.6 | 7.5 | 7.5 |
| Average deposit rate (1-year) | 2.7 | 2.7 | 2.7 | … | … | … | … | … | … |
| Average lending rate (1-year) | 3.3 | 3.5 | 3.5 | … | … | … | … | … | … |
| External trade | |||||||||
| Exports of goods and services | -1.5 | -9.1 | 7.9 | 3.9 | 9.6 | 9.3 | 7.2 | 6.5 | 6.4 |
| Imports of goods and services | -11.1 | -6.4 | 5.8 | 8.5 | 6.1 | 5.9 | 5.8 | 6.1 | 6.2 |
| (In percent of GDP) | |||||||||
| Saving-investment balance | |||||||||
| Gross domestic investment | 44.7 | 44.6 | 43.8 | 44 | 43.5 | 42.9 | 42.3 | 41.8 | 41.2 |
| Public sector | 6.3 | 5.9 | 4.8 | 4.4 | 4.5 | 4.3 | 4.2 | 3.9 | 3.7 |
| Private sector | 38.4 | 38.7 | 39 | 39.6 | 39 | 38.6 | 38.1 | 37.8 | 37.5 |
| Gross national saving | 36.8 | 36.6 | 35.8 | 35 | 35.9 | 36.7 | 36.8 | 36.3 | 35.8 |
| Public sector | 4.9 | 5.2 | 6 | 5.1 | 5.5 | 5.5 | 5.3 | 5 | 4.8 |
| Private sector | 32 | 31.5 | 29.8 | 29.8 | 30.3 | 31.2 | 31.5 | 31.3 | 31 |
| Public finances 1/ | |||||||||
| Revenue and grants | 22.6 | 22.6 | 22.1 | 22.2 | 22.2 | 22.3 | 22.1 | 22 | 21.8 |
| Expenditure | 25.9 | 25.5 | 24.1 | 24.4 | 24.5 | 24.1 | 23.8 | 23.3 | 22.8 |
| Current, including interest | 16.9 | 17.2 | 17.4 | 18.3 | 18.1 | 18 | 17.9 | 17.7 | 17.5 |
| Capital | 8.9 | 8.3 | 6.8 | 6.2 | 6.4 | 6.1 | 5.9 | 5.5 | 5.3 |
| Overall balance, including ACP 2/ | -3.3 | -2.9 | -2.1 | -2.2 | -2.3 | -1.8 | -1.7 | -1.3 | -1 |
| Overall balance, excluding ACP 2/ | -2.2 | -1.8 | -1.6 | -2 | -2 | -1.7 | -1.7 | -1.5 | -1.5 |
| Total public debt | |||||||||
| Debt of Non-Financial Public Sector 3/ | 37.2 | 37.4 | 37.8 | 38.3 | 37.3 | 36.2 | 35.2 | 34.1 | 33.2 |
| External | 28.8 | 29.2 | 29.7 | 29.8 | 27.6 | 24.1 | 21.6 | 19.7 | 17.8 |
| Domestic | 8.4 | 8.1 | 8.1 | 8.5 | 9.7 | 12.1 | 13.5 | 14.4 | 15.4 |
| Debt of ACP | 5.1 | 4.8 | 4.1 | 3.5 | 2.9 | 2.4 | 1.9 | 1.5 | 1.2 |
| Other 4/ | 3.3 | 4 | 3.7 | 3.5 | 3.2 | 3 | 2.8 | 2.6 | 2.4 |
| External sector | |||||||||
| Current account | -7.9 | -8 | -8 | -9 | -7.6 | -6.2 | |||
| Net oil imports | 3.5 | 3.4 | 3.8 | 5.1 | 5.1 | 5 | |||
| Net foreign direct investment inflows | 7.3 | 8 | 7.5 | 6.6 | 5.8 | 5.9 | |||
| External Debt | 160.6 | 155.1 | 143.7 | 150.7 | 153 | 153.3 | |||
| Memorandum items: | |||||||||
| GDP (in millions of US$) | 54,316 | 57,821 | 61,838 | 65,465 | 70,981 | 76,706 |
1/ Includes Panama Canal Authority (ACP).
2/ Starting from 2015, includes overspending allowed under Article 34 of Law 38 of 2012.
3/ Non-Financial Public Sector according to the definition in Law 31 of 2011.
4/ Includes contingent liabilities of ENA, ETESA, and AITSA.
[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here:
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: RAP