This Selected Issues paper examines fiscal policy implications for labor market and economic diversification in Botswana. The IMF report analyzes that large public employment significantly affect labor market outcomes in middle-income countries, including Botswana. It is noted that reforms aimed at reducing the rents and the size of the public sector is likely to significantly improve market outcomes in Botswana. As part of efforts to find new engines of growth and support sustainable long-term and broad-based growth, Botswana has over the years also vigorously pursued policies to diversify the economy.
This Selected Issues and Statistical Appendix paper on Burkina Faso reviews background information and analytical support for key policy issues. This paper extends the results from the debt sustainability analysis for Burkina Faso and develops two alternative debt ratios that are suitable for assessing the impact of discount rate changes on the debt burden of the country. To better understand the implications of discount rate changes on the debt situation, the set of available debt ratios by developing two new measures of debt burden were extended.
The staff report for Niger’s 2008 Article IV Consultation, first review under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, and request for Waivers and Modification of Performance Criteria is discussed. The authorities initially suspended taxes on critical foodstuffs but also relied on targeted interventions for vulnerable groups, which made it possible to end the tax suspensions in September. They also froze the retail price of petroleum products, in effect suspending part of the tax on fuel.
The staff report for the combined 2005 Article IV Consultation on Burkina Faso focuses on recent economic developments and performance. Burkina Faso has maintained an average real GDP growth rate of more than 6 percent annually, and inflation has been contained. Revenues performance is benefiting from the computerization of the major customs offices and the introduction of a new single taxpayer identification number. Continued implementation of pro-growth macroeconomic policies, diversification of the economy, and structural reforms will be necessary to establish the conditions for a resumption of robust economic growth.
International Monetary Fund. Middle East and Central Asia Dept.
With large financial wealth, Qatar is well positioned to weather lower hydrocarbon prices. Nonetheless, the substantial price decline and the on-going fiscal consolidation are dampening economic performance and the outlook.
In this study, macroeconomic development, its performance, and outlook are reviewed. Narrowing of the infrastructure gap and public financial management (PFM) are focused to safeguard investment quality. Fiscal reform has been introduced to improve the design of the tax system and to strengthen fiscal institutions that the FAD technical assistance (TA) mission introduced. A comprehensive action plan has been introduced to improve the business climate. The outstanding debt issues are being resolved.
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 basket of the rand and the SDR in an effort to maintain a stable real effective exchange rate (REER). The 12-month inflation rate fell to 8.4 percent in May 2009 from 15 percent in mid-2008, mostly reflecting reduced pressure on fuel and food prices.
The oil price shock that started in mid-2014 has substantially reduced fiscal revenue and exports, with growth coming to a halt and inflation accelerating sharply. This has brought to the forefront the need to address more forcefully vulnerabilities and dependence on oil, and to diversify the economy. The authorities have taken steps to mitigate the impact of the external shock: an 18 percent of GDP improvement in the non-oil primary fiscal balance over 2015-16, mainly through spending cuts including the removal of fuel subsidies, has been implemented; and the kwanza has been devalued against the U.S. dollar by over 40 percent since September 2014, with international reserves being used to smooth the depreciation. However, the exchange rate has been re-pegged since April 2016 leading to an appreciation of the kwanza in real terms, and further policy actions are needed to continue adjusting the economy to the ‘new normal' in the oil market and to return growth to a level consistent with poverty reduction.