Switzerland

Switzerland PDF
Author:
Publisher:
Category : Economic development
Languages : en
Pages : 53
View: 5111

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Book Description:
"The Swiss economy has regained momentum, but inflation remains close to zero. There has been no new foreign exchange intervention, but past safe haven inflows have not yet reversed despite improved market confidence toward the euro area and tapering in the United States. Notwithstanding policy action, risks in the mortgage market remain elevated. The large systemic banks have continued to strengthen capital and restructure their business models, but the financial sector reform agenda is still incomplete. Exchange Rate Policy: The exchange rate floor remains a necessary element of the monetary policy framework, as inflation is still close to the bottom of the range compatible with the Swiss National Bank's (SNB) definition of price stability and renewed exchange rate appreciation, as might arise from a new bout of safe haven inflows, would quickly bring back deflationary pressures. The Mortgage Market: With monetary conditions remaining accommodative and housing prices growing faster than incomes, measures to curb mortgage demand especially from the more vulnerable households need to be strengthened. The Banking Sector: Cooperation agreements with key foreign supervisors need to be reached to make the large banks resolvable. More resources are required for prudential bank supervision, and closer oversight and guidance to auditors performing supervisory audits are necessary. Deposit insurance should be brought in line with emerging international best practices"--Abstract.


United States 2014 Article Iv Consultation Staff Report Press Release

United States  2014 Article IV Consultation Staff Report  Press Release PDF
Author: International Monetary Fund. Western Hemisphere Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 65
View: 4928

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Book Description:
Focus. The 2014 Article IV Consultation focused on five broad themes to strengthen the recovery and improve the long-term outlook: raising productivity growth and labor force participation, confronting poverty, keeping public debt on a sustained downward path, smoothly managing the exit from zero policy rates, and securing a safer financial system. Main policy issues. • Policies are needed to boost longer-term potential output through investments in infrastructure, raising educational outcomes, improving the tax structure, and developing and expanding a skilled labor force (including through immigration reform, job training, and providing childcare assistance for working families). • Forging agreement on a credible, medium-term consolidation plan should be a high priority and include steps to lower the growth of health care costs, reform social security, and increase revenues. In the absence of such a comprehensive agreement, efforts should still focus on identifying more modest opportunities to relax the near- term budget envelope, paid for with future fiscal savings. • An enduring consequence of the past recession has been a jump in the number of families living in poverty. Improved employment prospects and economic growth will be essential to reverse this upward movement. An expansion of the Earned Income Tax Credit and an increase in the minimum wage should also be part of the solution. • The goal for monetary policy is to manage the exit from zero interest rates in a manner that allows the economy to converge to full employment with stable prices while avoiding financial instability and negative spillovers to the global economy. This is a complex undertaking. To facilitate it, steps could be taken to expand the Fed’s communications toolkit so as to provide greater clarity on how the Federal Open Market Committee assesses progress toward its longer-run goals. • Continued regulatory oversight is needed to counter the emergence of financial imbalances, particularly those that may be growing outside of the banking system. Policies should also be deployed to keep mortgage credit accessible and attract more private capital into housing finance while minimizing risks to taxpayers. • The U.S. external position is assessed to be broadly consistent with medium-term fundamentals and desirable policies.


Belgium 2014 Article Iv Consultation Staff Report Press Release

Belgium  2014 Article IV Consultation Staff Report  Press Release PDF
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 71
View: 5975

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Book Description:
The 2014 Article IV Consultation discusses economic developments and policies in Belgium. It highlights that despite its resilience, the Belgium economy has been losing competitiveness due to higher labor cost and lower productivity growths than peer countries. The government has taken measures to close the wage gap, but it is highlighted that the economy also needs to become more productive and adaptable through deeper product and labor market reforms. The supervisory and regulatory frameworks are being strengthened with a new draft banking law that restrains trading activities and improves the recovery and resolution framework.


Denmark 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For Denmark

Denmark  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for Denmark PDF
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 47
View: 296

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Book Description:
This 2014 Article IV Consultation highlights that the Danish economy is recovering slowly and unevenly. The economy contracted slightly in 2013, but it looks likely to accelerate modestly in 2014. Growth is held down by a trend decline in North Sea oil and gas production as well as exports to euro-area partners. At the same time, private domestic demand and non-oil exports are supporting growth. The recovery is likely to continue but remain fragile. Annual growth is estimated at 0.7 percent in 2014, projected to increase to 1.4 percent in 2015, and trend to slightly above 2 percent thereafter.


Algeria 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For Algeria

Algeria  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for Algeria PDF
Author: International Monetary Fund. Middle East and Central Asia Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 60
View: 3524

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This 2014 Article IV Consultation highlights that economic activity in Algeria has picked up in 2014, with real GDP growth projected to reach 4 percent following 2.8 percent growth in 2013. The hydrocarbon sector is expected to expand for the first time in eight years, while nonhydrocarbon growth remains supportive. Inflation has decelerated sharply to 2.1 percent, thanks in part to tighter monetary policy. The fiscal deficit is expected to widen to more than 7 percent owing to lower hydrocarbon revenue, a sharp increase in capital expenditure, and continued high current spending. Fiscal savings are expected to decline for the second consecutive year.


Singapore 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For Singapore

Singapore  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for Singapore PDF
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 59
View: 418

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Book Description:
KEY ISSUES Outlook and risks. Following an upturn in 2013, growth is expected to moderate somewhat during 2014-2015, narrowing the positive output gap. The impact of recovering demand in advanced economies is likely to be offset by the ongoing real appreciation of the currency and the gradual tightening in global monetary conditions. Transitional costs related to the economic restructuring (see next paragraph) are also expected to dampen growth in the near term. As a very open economy, Singapore is particularly exposed to external risks related to a protracted period of slower growth in advanced and emerging economies, a continued buildup and eventual unwinding of excess capacity in China, an abrupt surge in financial market volatility as investors reassess underlying risks, and geopolitical risks. Medium- and long-term challenges. The authorities focus squarely on the implementation of their medium-term economic restructuring plan. With the aim to boost the productivity of labor and land, the plan could set the stage for a new era of sustainable growth. However, productivity improvements may take some time to materialize. For example, the slowing inflow of foreign workers, a key part of the reform agenda, could moderate potential growth and lower competitiveness in light of the tight labor market. The social safety net is being strengthened in the context of a rapidly aging population. Policy assessment. Singapore continues to implement a strong set of macroeconomic and financial sector policies. The moderately tight monetary policy remains appropriate but the fiscal stance is looser than would be warranted by cyclical considerations. The 2014 budget focuses on noncyclical considerations, including support for companies’ efforts to raise productivity and additional social spending on healthcare for the elderly. The authorities’ plan to raise social and infrastructure spending by 1-2 percent of GDP over the medium term should help reduce the large current account surplus. Financial regulation and supervision is among the best globally and Singapore is a frontrunner in implementing global regulatory reforms. Macroprudential policies have contributed to cool the housing and car permit markets and good progress has been made in implementing key short•term FSAP recommendations.


Switzerland 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For Switzerland

Switzerland  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for Switzerland PDF
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 53
View: 1596

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Book Description:
This 2014 Article IV Consultation outlines that the growth of the Swiss economy has gathered pace, but inflation remains close to zero. The recovery is expected to continue and inflation should rise gradually although the output gap will progressively close. The fiscal position is healthy, with a broadly neutral stance projected for 2014. Despite improved market confidence toward the euro area and tapering in the United States, the exchange rate has remained close to the floor. The authorities have taken several measures to contain risks, including raising the countercyclical capital buffer and adopting prudential measures to tighten lending standards and conditions.


Republic Of Palau 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For The Republic Of Palau

Republic of Palau  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for the Republic of Palau PDF
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 45
View: 4358

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Book Description:
This 2014 Article IV Consultation highlights that after two years of strong expansion, growth is estimated at about zero percent in the fiscal year 2013 (FY2013, ending in September) in the Republic of Palau owing to declines in construction and tourism. Inflation moderated to 2¾ percent (annual average) in FY2013 thanks to stable international food and fuel prices, and it is expected to stay at about 3 percent in FY2014. Growth is projected to increase to 1¾ percent in FY2014 and to 2¼–2½ percent over the medium term driven by the recovery in tourism and infrastructure developments.


Islamic Republic Of Afghanistan 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For The Islamic Republic Of Afghanistan

Islamic Republic of Afghanistan  2014 Article IV Consultation Staff Report  Press Release  and Statement by the Executive Director for the Islamic Republic of Afghanistan PDF
Author: International Monetary Fund. Middle East and Central Asia Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 98
View: 169

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Book Description:
KEY ISSUES Context. Over the past decade, Afghanistan has made enormous progress in reconstruction, development and lifting per capita income. Security and political uncertainties, and weak institutions have constrained growth and weighed on social outcomes. With significant reform efforts and donor support, Afghanistan has maintained macroeconomic stability, implemented important structural reforms, and built policy buffers, but significant vulnerabilities remain. The IMF has been supporting Afghanistan through technical assistance and a three-year Extended Credit Facility (ECF) arrangement. Reviews under the ECF arrangement have been delayed. Outlook and risks. 2014 is a crucial year in the political and security transitions and the run-up to the “transformation decade” (2015–24). Assuming smooth political and security transitions, continued reform and donor financing, the outlook should be positive. Large security and development expenditure needs and a limited domestic revenue capacity mean that Afghanistan will remain dependent on donor financing for an extended period. Macroeconomic stability, structural reforms, and political and security stability are needed to ensure inclusive growth. Risks, mostly on the downside, are related to adverse domestic or regional security developments, political instability, inadequate implementation of economic policies, and donor fatigue. Policy recommendations. The authorities’ economic strategy (maintaining macroeconomic stability, strengthening the financial sector, improving economic governance, and moving toward fiscal sustainability) remains appropriate and needs strengthened implementation. Sustained implementation of this strategy will safeguard growth and build buffers to help manage shocks. Policies should continue to aim at strengthening revenue collection, managing money growth to control inflation while preserving exchange rate flexibility, strengthening bank supervision, and quickly enacting anti-money laundering (AML), countering financing of terrorism (CFT), banking, central bank, and value-added tax legislation.


Mexico 2014 Article Iv Consultation Staff Report And Press Release

Mexico  2014 Article IV Consultation Staff Report  and Press Release PDF
Author: International Monetary Fund. Western Hemisphere Dept.
Publisher: International Monetary Fund
Category : Business & Economics
Languages : en
Pages : 72
View: 1806

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Book Description:
This 2014 Article IV Consultation highlights that after a sharp slowdown in 2013, growth in Mexico is projected to recover to 2.4 percent this year. The strong recovery in the United States in the second quarter of 2014 has triggered a rebound in Mexico’s manufacturing production and exports. In addition, construction activity is firming up, supported by a rebound of residential investment and an increase of government spending on infrastructure. Mexico’s external position remains broadly consistent with fundamentals and desirable policy settings. In 2014, the current account deficit is projected to remain unchanged with an improving trade balance offset by a continued increase in factor payments.