The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
There is broad agreement on the appropriateness of the budget deficit target. The government aims to strengthen expenditure control and efficiency, at the national and at subnational levels, to achieve a reduction in the tax burden while cutting the fiscal deficit. The IMF staff suggested complementing new initiatives, aimed at strengthening growth prospects in the South, with strong labor market measures. Continued wage moderation, a reduction in the tax burden, and further product market reform and privatization will help secure an adequate level of competitiveness.