On January 3, 2020, the Principality of Andorra applied for Fund membership. Ten and a half months later, on October 16, 2020 Andorra became the 190th member of the Fund. Five months after that, Andorra had its first Article IV mission. The Andorran authorities want to express their gratitude to Mission Chief Ms. Srobona Mitra and her team, as well as all involved departments, for having steered the authorities through this momentous period with highly valuable policy advice. They agree with the trust of the staff report and its Selected Issues Paper. They want to thank staff for having taken the time to meet with a wide range of public and private stakeholders to gain an in-depth understanding of the Principality. Finally, after many virtual meetings, the authorities are eager to meet the IMF team in person.
International Monetary Fund. Western Hemisphere Dept.
Weak growth and underlying structural vulnerabilities persist in both Curaçao and Sint Maarten. Worsened macroeconomic conditions—reflecting the spillovers from one of Curaçao’s largest trading partners and the devastation from Hurricanes Irma and Maria in Sint Maarten—make the need for policy adjustment and structural reforms aimed at ensuring fiscal sustainability, enhancing competitiveness, strengthening investor confidence, and developing capacity more urgent.
Iceland is experiencing an economic slowdown that has reduced overheating concerns. Tourism growth has decelerated and the króna has stopped appreciating. Demand management has become easier, allowing the authorities to focus on medium-term priorities, including infrastructure, healthcare, education, and the environment.
Risks, however, have become more evident. High fuel prices and other factors are challenging the airline business; world trade tensions are escalating; and the United Kingdom—a vital trading partner—is not yet assured of a smooth EU exit. Icelandic policies thus need to focus on further increasing resilience to shocks.
International Monetary Fund. Asia and Pacific Dept
Third Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka