IMF affirms Kosovo's 2017 GDP growth forecast at 3.5%

12 Ottobre, 2017, 16:50 | Autore: Alighiero Casassa
  • A conference room is prepared at the International Monetary Funds Headquarters 2 building ahead of the annual meetings in Washington DC on October 9

"Policymakers must take advantage of the improving global outlook and avoid complacency by addressing rising medium-term vulnerabilities", the IMF said in its report released ahead of the annual IMF and World Bank meetings here this week.

Rich countries should actively help low-income countries to develop resilience to temperature increases, like for instance the successful Productive Safety Net Program in Ethiopia, which supports households with environmental and infrastructure projects and programs to diversify income sources.

"So for insuring that you have the ability to use those revenues for enhancing expenditure, there is a need to make sure that interest to revenue is kept at reasonable level".

According to the report, the rebound in the region is led by the region's largest economies - Nigeria and South Africa.

Kosovo's current account deficit is projected to rise to 11.0% of GDP in 2017 and 11.3% in 2018, from 9.8% in 2016, the IMF said.

"A recovery in the oil sector, partly due to a decline in militants' attacks on oil pipelines, helped Nigeria pull out of five consecutive quarters of negative growth but the rebound was softer than expected".

Egypt's consumer price inflation for the fiscal year is projected at 21.3 percent, the report showed.

Ethiopia's Minister of Environment, Forest and Climate Change, Gemedo Dalle, will be presenting the country's best practice around climate change adaption during his engagement at the 8th Sustainable Innovation Forum, in partnership with the UN Environment, 13 - 14 November, Bonn, during COP23.

"In April 2017, the CBN introduced a new investor and exporter window, which had helped to improve businesses' access to foreign exchange", it said.

Also, the World Bank Lead Economist and lead author of the report, Mrs Punam Chuhan-Pole said that the outlook for the region remained challenging as economic growth remained very low.

Major central banks should ensure a smooth normalisation of monetary policy through well communicated plans on unwinding their holdings of securities and guidance on prospective changes to policy frameworks, the report said. Joining him at the panel are: Naoko Ishii, CEO of GEF and Andrew Steer, Executive Director of World Resources Institute.