The Executive Board of the
The three-year ECF arrangement for
Looking ahead, with greater calm after the elections, domestic demand is expected to recover, and real GDP growth is projected to increase to 6 1/4 percent in Fiscal Year (FY)15 (
Macroeconomic policies under the authorities' program are set to remain focused on safeguarding stability and building policy buffers. With inflation risks tilted to the upside in the near term, monetary policy should remain prudent. Fiscal policy will be anchored on a continued gradual reduction of the public debt-to-GDP ratio, while allowing for increased public investment and social spending. Continued fiscal prudence will also help provide greater room for credit growth to finance a recovery in private investment.
The program also embodies reforms to improve public financial management, including by formalizing monthly treasury cashflow forecasts, strengthening financial reporting by state-owned enterprises, and tightening debt management procedures.
The authorities are moving ahead with their plan for gradual liberalization of foreign exchange regulations, complemented by a streamlining of trade tariffs and regulations. Steps have also been taken to improve working conditions in the garment industry, including through a sizeable increase in the minimum wage, and to strengthen the targeting and efficiency of social safety net programs. Continued progress on these fronts should contribute to promoting high, sustained, and inclusive growth.
1 The Executive Board takes decisions without a meeting (based on lapse-of-time procedures) when it is agreed by the Board that a proposal can be considered without convening formal discussions.
TNS 30BautistaJude 140530-4751298 30BautistaJude
Most Popular Stories
- Small-Business Loans Fueling Economic Growth
- Tesco Head Steps Down After Profit Warning
- Comic-Con Offers Toy Designers a Chance to Go Wild
- Want a Job? Try Minneapolis
- Google Chrome Bug Draining Batteries: Report
- Clinton Wants U.S., E.U. to Get Tough on Russia
- Startup Makes It Easier to Buy American
- BlackBerry Appoints New COO from LiveOps Inc.
- GM Looking for Ignition Fix for Certain Cadillacs
- U.S. Stocks Start the Week on Shaky Ground