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Europe > Iceland

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Energy: Government Policy x
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Cover IMF Staff Country Reports
St. Kitts and Nevis: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper on St. Kitts and Nevis studies economic benefits from energy transition. Cheaper and more stable energy prices can support macroeconomic stability. In addition to the aforementioned effects, low and stable energy prices can mitigate the adverse impact from terms-of-trade shocks and reduce inflation volatility, thus contributing to smoothing out economic cycles. The energy landscape of St. Kitts and Nevis calls for energy reform. The two islands of St. Kitts and Nevis rely heavily on fossil fuels, primarily diesel, to power their grids without Interconnection. The analysis uses cross-country examples to examine the channels through which the adoption of renewable energy on a large scale can yield numerous long-term economic benefits. Transitioning to domestic renewable energy sources could stabilize domestic energy prices and reduce the volatility of inflation. A sharp reduction in energy costs in St. Kitts and Nevis could promote sectoral diversification. High-energy costs can prohibit economic diversification, particularly into energy intensive industries.
Keywords:
energy transition index; staff team of the International Monetary Fund; carbon capture in St. Kitts and Nevis; inflation volatility; copyright page; Renewable energy; Electricity; Energy prices; Non-renewable resources; Caribbean; Global
Cover IMF Staff Country Reports
Euro Area Policies: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Euro Area; IMF Country Report No. 23/264
International Monetary Fund. European Dept.
The 2023 Article IV Consultation discusses that the euro area economy has shown remarkable resilience in the aftermath of Russia’s invasion of Ukraine and the largest terms of trade shock in several decades, thanks to a swift policy response and a strong rebound in contact-intensive services. Looking ahead, growth is expected to pick up gradually throughout 2023 and 2024, supported by a recovery in real incomes in the context of continued tight labor market conditions, a further easing of supply constraints, and firmer external demand, even as financial conditions continue to tighten. While headline inflation has fallen sharply recently after reaching record high levels, core inflation is proving more persistent. As tight financial conditions restrain demand and supply shocks dissipate further, inflation is set to decline further but is expected to remain elevated for an extended period. Renewed supply shocks, which could result from an escalation of the war in Ukraine and a related increase of commodity prices, or a further intensification of geoeconomic fragmentation, would also push up inflation and hurt growth. On the upside, the economy could again prove more resilient than expected, especially amid a still large stock of excess savings.
Keywords:
Euro area headline inflation; inflation expectation; EU climate investment fund; EU AML authority; EU institution; EU bank; core inflation; EU economy; Inflation; Energy prices; Fiscal stance; Monetary tightening; Global; Europe