Latest news with #ArticleIVConsultation
Fibre2Fashion
16-07-2025
- Business
- Fibre2Fashion
France's real GDP growth is projected to slow to 0.6% in 2025
France's real GDP growth is projected to decelerate to 0.6 per cent in 2025, down from 1.1 per cent in 2024, according to the International Monetary Fund's (IMF) Article IV Consultation. The slowdown is attributed to global trade tensions, weak external demand, market volatility, and persistent domestic uncertainty. Growth is expected to improve modestly to 1 per cent in 2026. Despite subdued outlooks, the French economy demonstrated resilience in 2024, buoyed by the temporary economic lift from the Paris Olympics and a robust labour market. However, fiscal pressures persisted in 2024 due to lower-than-expected revenues, overspending by local governments and social security entities, and rising debt service costs, resulting in an expansionary fiscal stance despite efforts to control spending, as per the IMF. France's GDP growth is projected to slow to 0.6 per cent in 2025, down from 1.1 per cent in 2024, amid trade tensions and policy uncertainty, the IMF said. Despite Olympic-driven gains and a strong labour market, fiscal pressures persisted. The IMF urged fiscal reforms, praised banking resilience, and called for productivity and labour market improvements. IMF executive directors emphasised the urgency of strengthening public finances and advancing structural reforms. They backed the government's fiscal consolidation plans but urged a credible package of additional measures and deeper coordination across central, local, and social security spending. The IMF's 2025 Financial Sector Assessment Program confirmed the strength of France's banking sector, citing adequate capital and liquidity buffers. Directors praised ongoing efforts to improve financial oversight and incorporate climate and cyber risks into institutional governance frameworks. To sustain long-term growth, directors stressed the need to boost productivity through better-targeted R&D spending, reduced regulatory burdens, and strengthened labour market integration, especially for women and migrants. Fibre2Fashion News Desk (HU)
Iraq Business
15-07-2025
- Business
- Iraq Business
IMF Explains Iraq's Exchange Rate Arrangement
By John Lee. The International Monetary Fund (IMF) has issued a brief explainer on Iraq's exchange rate arrangement. As part of a follow-up to last week's report on the state of the Iraqi economy, the IMF clarified as follows: " Exchange Rate Arrangement "Iraq's de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. "Effective February 8, 2023, the official exchange rate was set at ID 1,320 according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website ( "There has been a change to Iraq's exchange system since the last Article IV Consultation. Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any restrictions under this provision. Iraq does not maintain any current account exchange restrictions or MCPs [Managed Currency Pegs]. Starting January 2025, all international transactions have been routed through commercial banks via their correspondent banking relationships (CBRs). "The Central Bank of Iraq (CBI) replenishes these balances weekly based on foreign exchange demand and conducts audits to ensure that the allocated funds are used in compliance with AML/CFT regulations. Private banks are also encouraged to broaden their CBR networks, particularly with non-U.S. financial institutions. " Click here to download the full report. To browse our comprehensive library of reports on Iraq, click here. (Source: IMF)
Libya Review
26-06-2025
- Business
- Libya Review
IMF Reports Decline in Libya's GDP Growth
Libya's real GDP growth dropped significantly to around 2% in 2024, down from 10% in 2023, primarily due to contraction in the hydrocarbon sector, according to the latest International Monetary Fund (IMF) Article IV Consultation. The IMF cited political divisions and weak institutional capacity as key factors hindering necessary reforms and fiscal control. Despite the downturn in oil output, non-hydrocarbon growth remained relatively strong, fuelled by continued government spending. However, both the fiscal and current accounts swung from surplus in 2023 to deficit in 2024. While inflation remained low, the overall economic outlook remains fragile. The IMF projects that Libya's GDP will rebound in 2025 as oil production expands, but growth is expected to moderate to around 2% in the medium term. The non-oil sector is forecast to maintain growth between 5% and 6%, sustained by high government expenditure. Nevertheless, the fiscal balance is anticipated to remain in deficit, although narrower than in 2024. The report warned that Libya remains heavily exposed to global oil market volatility and faces domestic risks, including renewed political tensions that could disrupt oil operations and impede economic progress. The IMF urged authorities to implement reforms to control spending, enhance transparency, and diversify the economy. The Fund emphasised the need for a unified national budget and a shift away from excessive wage and subsidy spending. It also recommended a carefully calibrated monetary policy and the eventual unification of the exchange rate to reduce distortions. In its concluding assessment, the IMF highlighted the importance of banking sector reforms, anti-corruption efforts, and reliable economic data as foundations for long-term stability and private sector growth.
RTÉ News
11-06-2025
- Business
- RTÉ News
The Irish economy has performed well and entered 2025 in a strong position
The Irish economy has performed well, with the domestic economy, as measured by the Modified Gross National Income, estimated to have grown by about 4% in 2024, according to the International Monetary Fund's annual review of the Irish economy. The IMF Staff Report for the 2025 Article IV Consultation said the domestic economy is projected to continue growing, albeit at a slower pace in a highly uncertain global environment. It also noted there are significant external downside risks to growth and public finances, which are vulnerable to external trade and tax policy shifts. Ireland's 2025 Article IV Consultation was set against the backdrop of Budget 2025 which was framed in the context of a continued need to improve public services and accelerate infrastructure to support a growing population and the competitiveness of the Irish economy. The Report sets out the views of the IMF on the current position of the Irish economy and identifies key structural factors that will have a bearing on domestic living standards in the years ahead. The Minister for Finance Paschal Donohoe said he welcomed the IMF's assessment of the results achieved and noted the risks highlighted in the report. "I note and share the IMF's assessment of external risks, notably the reversal of globalisation, the ongoing disruption caused by regional conflicts, domestic capacity constraints, and the uncertainty in relation to corporation tax receipts," said Minister Donohoe. "While I acknowledge Ireland's vulnerability to the rise in global uncertainty, our economy has demonstrated resilience in the face of consecutive large shocks. "I acknowledge the IMF's recommendation of a broadly neutral fiscal stance for the upcoming budget and five-year fiscal plan." Minister Donohoe said the Programme for Government has committed to delivering a clear and credible macroeconomic and fiscal framework and one that would prioritise continued economic resilience through investment in capital spending and funds for future needs. "I welcome the IMF's strong support for the two savings funds which the Government has established. By the end of this year, I expect a total of €16 billion to be saved in the funds."
Observer
03-06-2025
- Business
- Observer
IMF praises Oman's economic progress and fiscal discipline
MUSCAT: A visiting International Monetary Fund (IMF) mission has concluded its preliminary meetings with the Government of Oman as part of the 2025 Article IV Consultation. The discussions focused on recent economic, financial, and monetary developments, as well as structural reform progress in the Sultanate of Oman. The IMF commended Oman's economic performance, noting that real GDP grew by 1.7% in 2024—up from 1.2% in 2023—thanks to robust non-oil sector growth, particularly in manufacturing, logistics, tourism, and renewable energy. Growth is forecast to accelerate to 2.4% in 2025 and 3.7% in 2026, supported by the easing of OPEC+ production caps and ongoing economic diversification. Inflation remains well contained at just 0.9% year-on-year for the first four months of 2025. The Fund lauded Oman's prudent fiscal policy, which delivered a 3.3% budget surplus in 2024 despite rising infrastructure and public service investments. However, the surplus is projected to narrow to 0.5% of GDP in 2025 and 2026 due to lower oil prices, before improving again in the medium term. Public debt fell to 35.5% of GDP in 2024. The IMF highlighted Oman's continued fiscal reform momentum and targeted investments in priority sectors, praising the Oman Investment Authority's role in enhancing governance of state-owned enterprises. Oman's banking sector was described as strong, with high asset quality, solid capital and liquidity buffers, and sustained profitability. Credit to the private sector continues to expand, fueled by growing deposits and healthy net foreign assets. The Central Bank of Oman received praise for improving liquidity management and promoting financial sector development and inclusion. The external sector also showed strength, posting a current account surplus of 2.2% of GDP in 2024. A temporary deficit is expected in 2025–2026 due to softer oil prices and non-oil exports, but a return to surplus is anticipated as oil output rises. The IMF also welcomed progress in structural reforms, including tax system modernization and the Future Fund's success in attracting private investment. Ongoing investments in green hydrogen and renewables were also highlighted as key pillars of the Eleventh Five-Year Plan (2026–2030) and Oman Vision 2040. The Central Bank of Oman expressed appreciation for the IMF's assessment and reaffirmed its commitment to financial stability and a sustainable, diversified economy. — ONA
